Page 18 - MONTT LATIN AMERICAN MAGAZINE, SEPTEMBER 2021 (English)

Venezuela: New Devaluation While Dialogue with the Opposition Resumes
While in Mexico the dialogue between the government and the opponents was restarted, in the country the population was preparing for a devaluation that seeks to eliminate six zeros from the bolivar for the third time. Today one million sovereign bolivars is exchanged for 25 cents.
Venezuela suffers from a hyperinflation process that has already lasted for more than four years and its Central Bank has found it necessary to devalue as of the beginning of october to eliminate six zeros from the local currency, the bolivar, something that according to experts could be lost in a few months if a program is not put in place to stop the current inflationary spiral.
When the devalued currency enters circulation for the third time so far this century, the current sovereign bolivar will be called the digital bolivar. Despite the name of the new currency, it will not be digital, but will have bills and coins. The six zeros that will be removed are added to another eight, already eliminated in the two previous reconversions, when the currency went from being called a bolivar, without surnames, to a bolivar strong and, later, the bolivar sovereign.
Cosmetic Change
Due to hyperinflation and constant devaluation, the highest denomination bill currently in circulation, the one million sovereign bolivars, is exchanged for 25 cents on the dollar and its purchasing power is practically non-existent.
Faced with this situation, the Venezuelan economy is experiencing transactional dollarization and businesses have numerous problems balancing their balance sheets due to the large number of zeros they must write. For the opposition, the measure “has only one purpose”, that of “facilitating the exchange, the acquisition of goods and services. It is only a cosmetic change to facilitate transactions,” it was asserted.
New Negotiating Round
On the other hand, the third round of dialogue between the Government of Venezuela and the opposition took place in Mexico, after both parties resumed the cycle of talks after overcoming the impasse with Norway, a country that mediates between both parties.
The problems occurred due to the statements of Prime Minister Erna Solberg in the General Assembly of the United Nations Organization on the human rights situation in the South American country.
It was considered overcome with a declaration by Dag Nylander, of the negotiating team, who reiterated the role of neutrality of the Kingdom of Norway . “It is essential that this process is between the nationals themselves, without any undue interference. We would like to acknowledge the results of the past rounds and we hope that the parties will be able to achieve important advances that benefit the country,”said the mediator.
The representative of the Venezuelan Government said upon his arrival in Mexico together with the official delegates that “we hope that the meetings will be as fruitful and constructive as those we have held in the past.”
The representation of the Venezuelan opposition has reiterated its willingness to continue in the dialogue in Mexico with the government side.
The President of Venezuela, Nicolas Maduro, assured that with the third round of negotiations between the Government and the Unitary Platform of the opposition, progress is being made towards the recovery of assets abroad.
“Whatever (the President of Colombia) Iván Duque does,” said President Maduro, “the Monomeros company is Venezuelan and we are going to recover it. Whatever Guaidóo does, the Citgo oil company is Venezuelan and we are going to recover it and here we go, “ he said.
Likewise, the President asked the rest of the countries “not to interfere in the internal affairs of Venezuela” and not to “shoot” the dialogue process that began on August 13th.
No Agreements
In this phase of contacts, it should be about a judicial reform in Venezuela, but in the joint communiqué, the parties limited themselves to expressing that “positions were approached in the search for solutions to the challenges in social, economic and political matters.”
The same President of Venezuela had expressed his desire to reach “new agreements” in the third round of dialogue, but the only pact announced was to “carry out immediately” consultations with national and international political and social actors, but not gave more details. They also agreed “on the need to ensure a gender approach in the development of dialogue.” During the reading of the statement, in which the head of the Norwegian delegation, Dag Nylander, participated, the date of what would be the fourth round of negotiations was not specified.
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