a lot of AI in that image
Post
Kathey Aoki WKK
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🚨 PARTIALLY TRUE, BUT HEAVILY MANIPULATED IN THE NARRATIVE 🚨
Here's the raw truth about the "stabilization" of the dollar in Venezuela in 2022.
⸻
🧨 THE UNCOMFORTABLE TRUTH
❌ There was no "stabilization" of the bolívar
In 2022, the bolívar depreciated by more than 250%.
That is NOT stability under any serious economic standard.
👉 A "controlled" rise in the dollar doesn't mean the currency is stable
👉 It means the Central Bank of Venezuela (BCV) managed the pace of depreciation
⸻
✅ WHAT IS TRUE (AND HERE LIES THE NUANCE)
⚙️ The BCV DID achieve something technical:
✔️ Reduced the chaotic volatility seen in previous years
✔️ Managed to align the BCV dollar rate and the parallel market rate more closely for several months
✔️ Aggressively and consistently intervened in the foreign exchange market by selling foreign reserves
✔️ Temporarily diminished the prominence of the parallel market
📌 This is not monetary stability
📌 This is modern foreign exchange control in disguise
⸻
💸 HOW WAS THIS "CALM" ACHIEVED?
Not magic. Not confidence. It was:
🩸 Massive depletion of reserves
🩸 Continuous injection of dollars into the banking system
🩸 Restriction of bolívar liquidity
🩸 A cold economy, crushed wages, and suppressed consumption
👉 Fewer bolívares in circulation = less immediate pressure on the dollar
Here's the raw truth about the "stabilization" of the dollar in Venezuela in 2022.
⸻
🧨 THE UNCOMFORTABLE TRUTH
❌ There was no "stabilization" of the bolívar
In 2022, the bolívar depreciated by more than 250%.
That is NOT stability under any serious economic standard.
👉 A "controlled" rise in the dollar doesn't mean the currency is stable
👉 It means the Central Bank of Venezuela (BCV) managed the pace of depreciation
⸻
✅ WHAT IS TRUE (AND HERE LIES THE NUANCE)
⚙️ The BCV DID achieve something technical:
✔️ Reduced the chaotic volatility seen in previous years
✔️ Managed to align the BCV dollar rate and the parallel market rate more closely for several months
✔️ Aggressively and consistently intervened in the foreign exchange market by selling foreign reserves
✔️ Temporarily diminished the prominence of the parallel market
📌 This is not monetary stability
📌 This is modern foreign exchange control in disguise
⸻
💸 HOW WAS THIS "CALM" ACHIEVED?
Not magic. Not confidence. It was:
🩸 Massive depletion of reserves
🩸 Continuous injection of dollars into the banking system
🩸 Restriction of bolívar liquidity
🩸 A cold economy, crushed wages, and suppressed consumption
👉 Fewer bolívares in circulation = less immediate pressure on the dollar
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