EXCHANGE RATE,IMPORTANT

This is fresh information that i think will help people who will travel to Venezuela from now.
Even if there is people in other threads saying the opposite i think they are wrong, so i'll explain what i know about non official exchange rate.

My girfriend is Venezuelan so she uses to send money to her family there. In Spain if you send from some money transfer agencies(not western union) and only to bank accounts there, you used to get something similar to the non official exchange rate(for example if it was 8 for an euro,you used to get 7.2,only as an example.Anyway,nobody will give you the exact exchange rate of paralel market,nor in Venezuela,if they did it.Where is the bussines?)so i use to refresh my information about exchange rate once each month.

What happened after bolivar devaluation last week;

If you use to read the "dolar paralelo" site, that people uses to post here to show the non official exchange rate,you will see that it hasn't changed the currency rate since the devaluation,and they aren't showing the exchange rate percentage difference,even if the site is still posting news.

When the bolivar went devaluated it passed to 4.5 when the paralel market was at that moment 6.10(it means that they will pay you around 5.5 each dollar).That means that the difference in that moment was from 5.5 to 4.5. Not as big as it used to be.
At the same time Venezuelan government started with emissions of bonds(i don't know how it works i'm not an economist,you can see it in the "dolar paralelo" site if you read spanish) wich made the paralel exchange rate fell around another 10% in one day(around 0.55 it means from 5.5 to 5.0 instead the 4.5 official rate).And government says they will still selling bonds until the differences between the official rate and unoffial is even smaller.

So,all that means that for example to my girlfriend now they pay 4.8 bolivares for each dollar(i have calculated it from euros)in the paralel market.It was like that 3 days ago.

Finally what i mean is that i'm not sure if it still worthing the risk for a so small difference to take your money with you and to change it in the black market.I had always did it and even give the information in this forum.But if the situation stills like those days maybe it's better to take your money from ATMs.

But i think that we should refresh this information if there is any change in the new situation.

I agree with you that the dollar-parallelo website is not necessarily accurate.

The true market is what two parties agree on. Probably there has been wider variation in the "true market" due to
(a) the government announcement

(b) post-announcement government actions, including store closings and intervention in currency markets
(c) regionally within VZ, because of big regional differences in supply/demand
(d) wider bid/ask spreads (difference between the "buy at" and "sell at" prices) because currency kiosks and their owners are not sure what the government will do and whether or not the government will be successful

It took the governement 5 years to change the exchange rate. I would have liked to have seen the governement move the "non-basic-items" rate a lot further/closer to the parallel market rate.
Of course, no surprise this rate change is made in an election year, where the governement holds (and generates) USD/Euro, which is of course now worth a whole lot more Bolivars ... so, why not have made an even greater change in the rate .... the people of a country get shafted once again.

I know that my english isn't great but i didn't want to say that the "dolar paralelo" site wasn't accurate(it is for commercial transactions).What i said is that, what people used to get in exchange for USD/euros in the black market was always a little less that what was posted in that site.

And the main idea(and the important one for those who travel) is that now(since some weeks ago) there is a really small difference between the paralel market and the official one so i don't think it still worthing the risk to bring your money with you to change it in the black market.

For the rest of your post, it is about politics. I don't think that a travel forum,specially in a post about currency exchange is the right place to talk about that. What i can say is that my girlfriend is venezuelan and she doesn't likes chavez but she doesn't likes opposition any more,and her family which is living in Venezuela,have really different oppinions(from hard "chavistas" to some who think that somebody should kill chavez),but they still being family and not killing theirselves.

What i think is;

1-A forum about travelling shouldn't be about politics.

2-I only give oppinions about politicians in my own country(spain),because i consider that it's a lack of respect to do it about other who must decide for themselves.

So just to clarify, if I use an ATM in Caracas now I will get a decent exchange rate of 4.5. Is that right?

I'm heading for Caracas again tomorrow so will let you know. One thing is clear though, you're still better taking USDs and getting 4.5 VEF from the street than 2.65 from an ATM.
As I said will post on it after 2pm tomorrow.

roysta you shouldn't get 2.65 for your dollars,you should get 4.5. As the 2.65 exchange rate is only for importing special goods as food or drugs. And i suppose that what you want to take from the ATM is not food or drugs.
When my girlfriends sends money now they pay her 4.5 throught western union who always payed the official exchange rate and 4.8 with other agencies who pay by bank account and use the paralel market exchange rate.

Nobody uses the 2.65 except for importing goods considered as esential.As you are not and importer,it shouldn't be your case but we will wait your answer.

Reply to jimmyjazz's comment re "politics"... if u look again at the msg, it outlines reasons for exchange rate changes, the slowness of the rate change (5 years), and the magnitude of the change could have been greater.

By the way, the new rates are 2.60 VEB ("import" and basic items rate) and 4.30 VEB.("petro dollars rate" aka all other items not in the other rate)

Practical experience now here in VZ, i have to say;

1. Yes, continue to bring cash before arrival in VZ

2. Credit cards and ATMs should give you the Petro dollars rate of 4.30 VEB for 1 USD ... i used my credit card last night at a hotel and before doing so asked what rate would be used for cash and what rate on the crdit cards. I acted on faith and observation of intelligence of the hotel manager who explained the difference in the 2 rates, in other words the reason it would be 4.30 on the credit card. I used the credit card for various reasons:
   a) little remaining USD cash
   b) i have more Euro's but the rates on Euro's are quite low
   c) at the rate of 4.3 VEB the price for the hotel was still quite economical
   d) i got a free ride from some Venezuelans at the bus station at 18:30h (dark and was raining). i would have walked but it would have taken me a lot longer and i would have been wet. BTW, in similar situations in Bolivia, i was invited to stay with the family .... anyways, the ride restored my faith in VZ people ... funny thing is, that gasoline is very cheap so that "Everyone is a Taxi Driver" ... diesel for the bus was .048 VEB per litre!
   e) i like to use my credit card at least once in every country visited (sort of like a souvenir and a remembrance of a place)

3. Rates for Euro are very low. Do a "cross-rate" calculation for the rates they quote u in USD and Euro. I got anything from 1 Euro = 1.36 USD and down to 1.20 USD.

4. Rates for USD, in various cities, different people in same city:

5.20 (converted small amt at this to pay "taxi")

5.50

5.33 (medium amt at this rate as needed to change more and it was raining quite hard and did not know where i would find other persons and next bus was scheduled to arrive within 1 hr; this was a person who lived in USA previously and indicated he needed "to make some money on the deal" and that he would probably get 5.50 .. seemed rather honest, and i doubt he would be able to get 6.00 or 5.90)

5.75 (yes, i took this one. No phone calls needed to other persons to get a rate somewhat closer to "intstitutional" rate)

5.00 (at the hotel where i used my credit card)

4.50 (offered by a road stop cafe ... initally the man said 4 VEB and then, with a puzzled face, said but didn't they make 2 rates and shouldn't this be at the petro-dollar rate of 4.3? so for simplicity of calculation i guess he said 4.5 ... i walked away)

4.00 (in Puerto La Cruz some people told me the rate on Margarita Island is actually LOWER than the petro-dollar rate because there is too much supply - i said then that i would use my foreign credit card/ATM and one man said, but Venezuelan's can't do that ... so, if this is true, then Venezuelans can't benefit to the same extent, if they did not prepare money arrangements before visiting the island).

So, again, yes, i would take cash!

Further to this my guess is if you're getting 4.2 or better at the official cambio at Caracas airport then you should get that rate at ATMs or on credit cards. But you will get between 5 and 6 onthe street and in shops so USDs are still king.

Further to this my guess is if you're getting 4.2 or better at the official cambio at Caracas airport then you should get that rate at ATMs or on credit cards. But you will get between 5 and 6 onthe street and in shops so USDs are still king.