Third foreign exchange auction of the year in Venezuela to be held for 300 million dollars
This week, the third foreign exchange auction for 300 million dollars will be held in Venezuela, reported economist Alejandro Grisanti, director of the firm Ecoanalítica. With this operation, placements through this channel total 800 million dollars so far this year and, if the current pace is maintained, the first quarter could close with between 1,400 and 1,700 million dollars intervened through the financial system.
TL;DR
- Venezuela will hold its third foreign exchange auction this year for $300 million.
- Year-to-date placements through this channel total $800 million.
- The current pace could lead to $1.4-$1.7 billion intervened in the first quarter.
- This level of intervention is notable during a period of typically lower demand.
- Maintaining this consistent execution strengthens market anchoring and reduces exchange rate volatility.
- Economist Alejandro Grisanti believes Venezuela could reach 4.1 million barrels per day in oil production in 10 years.
- Grisanti also advocates for the elimination of exchange controls, citing their substantial cost to the country.