rate changes in Venezuela, does it really matter?

Hi Marionl,

Good to see that you keep up with the news! I believe the recent economic changes, the devaluation of the BsF, will not seriously affect travellers and will not make Vzla any cheaper. In fact it may even make it more expensive as people will speculate and put their prices up, which will certainly be the case with those goods that were previously imported at Bsf 2.15 per US $ 1 and now are imported at BsF 4.30 per US $ 1. Most travellers anyway get their US $ exchanged at the parallel market rate which is higher that the official rate. Nevertheless it does fluctuate constantly. The devaluation only applies to those US $ granted by the government to Vzlan businesses and individuals at the official government rate of BsF 4.30 per US $ 1. Therefore continue to get your money exhanged at the parallel market rate.

Hope I answered your question.

Travel safe

Thomas
Caracas
berry_venezuela@hotmail.com

Overall effect ... i think it will cost more for travellers

As travellers our main items of consumption are:
1. Currency exchange.

(a) Recent volatile movement (other things being the same) will subside ... stock/currency markets have shock and then smaller moves to form a new range. I was hoping for a bigger initial movement since i will visit VZ soon, but looks like the low 6's (USD) and high 8's (EUR) are the max for now. (b) Parallel market rate really depends on the location within the country. We tend to think that a country is uniform/the same everywhere, but here i'd venture to guess that regional/local Supply and Demand will be a big factor. In a big city like Caracas with much business (comapnies, travellers, etc), foreign money is more fluid, easier to exchange, and likely more speculation. Expecting to find wider margins (downward/lower/less favourable) in smaller, more remote areas. Anyone with recent practical experience changing money? Please post
i. City
ii. Rate
iii. Type of Exchange Vendor (individual person, bus company, etc)

1. Transportation. With oil/gasoline being produced locally, no mention of additional taxes, and assuming current equipment, then it would seem
   (a) current/next few weeks' effect... should be no price gouging ... Anyone with recent practical experience on this ??
   (b) in near future (ie, sooner vs later) ... as buses need maintenance and replacement parts need to be ordered from abroad, bus companies will factor this into bus fares

2. Accommodation
   (a) international companies with local hotels ... they will probably try to raise prices, so they get the same revenue when converting back into their home country currency ... what will Chavez do??

   (b) domestic hotel/pousada/hostel/etc 9without considering food/washing/supplementary services, and assuming no new beds/etc imported)
   i. if prior to devaluation, they stated their rates in a foreign currency then no effect , ie you the traveller do not benefit. Could be that they have a mortgage in foreign currency.
   
   ii. Opportunistic / Gougers. The types who, prior to devaluation, priced their accommodation in local currency, and now think hey, ;et's charge a higher price because, oh, well, foreigners have all this money, etc etc
   iii. True Locals. The types who continue to price their accomodation in local currency.

I experienced each of these types in 2009 travels, most notably in Ukraine when the currency declined 60-75% from summer 2008 to summer 2009.
Of course, i prefer to stay at and appreciate the True Locals' type.

1. Food
   • many factors here ... locally produced, imported, etc. Logic similar to the above.

Anyone have recent experience with the cost of Ferry boat from Venezuela (Guiria) to Trinidad ??

Before the January 2010 devaluation, i read that the Venezuelan side plays around with the price of the ferry.

Has there been another change since the devaluation? OR does ferry still cost USD 92 + departure tax ?