Venezuela’s Maduro Announces Next Steps to Combat Currency War

Source:  TeleSUR
December 13 2016

nicolas maduro 16.jpg

President Nicolas Maduro. | Photo: AVN

According to authorities, the objective of the currency war is to leave the country with no liquidity in order to cause chaos in daily transactions.

Venezuelan President Nicolas Maduro said Wednesday that security forces have been deployed to banking facilities in the private and public sector in order to monitor the inventory of available bills of 100 bolivars.

RELATED: Why Are Venezuela 100-Bolivar Bills Accumulating in Colombia?

In a communique, the president thanked the central bank for cooperating and ordered banks to facilitate the opening of bank accounts for Venezuelan individuals.

He also ordered the reduction of the value-added tax of 2 percent for transactions online.

Criminal and right-wing elements

Maduro signed a decree Sunday establishing the end of the circulation of the 100 bolivars bill with the aim of stopping the extraction of the Venezuelan currency by criminal and right-wing elements that carry out illicit activities.

According to Venezuelan authorities, the money is withdrawn through various NGOs — contracted by the U.S. Department of the Treasury — to stifle Venezuela’s financial system.

NGOs hired organized crime groups

Through this operation, NGOs hired organized crime groups to extract tickets for which they paid between US$0.80 cents and US$1.30.

Venezuelans who have 100 bolivars bills can continue to use them in all their payments until they are out of circulation and will also have the possibility to exchange them at the public bank or deposit them in their accounts of any banking entity for 72 hours, beginning Tuesday.

Presidential legal adviser, Elvis Amoroso, explained that at the end of the 72-hour period for the exchange, the Central Bank of Venezuela will open a period of 10 days to continue the exchange.

One thought on “Venezuela’s Maduro Announces Next Steps to Combat Currency War

  1. There is no doubt that the action of the Maduro government to combat the stealing of the 100 bolivar bills by the enemies of the revolution is both timely and necessary.

    There should be no mistake about the objectives of the enemies of the revolution.

    Their objectives are as always to destabilize and ultimately destroy the revolution by starving Venezuelans of cash to conduct their daily transactions.

    Thus the failure of the Maduro government to swiftly control the naked stealing of these bills would lead to two unfavorable outcomes. First, it would help the enemies of the revolution to paralyze the routine economic transactions of the population and second and relatedly, it would also delegitimize the government’s ability to effectively manage its domestic affairs.

    The latter is so for at least two important reasons. First, it is the responsibility of every sovereign government to create and maintain social, economic and political stability for the residents of its country.

    Specifically, if the Maduro government fails to maintain liquidity in the country for Venezuelans to buy foods, pay their bills etc there is no doubt that chaos and instability will reign and the victors will be the right-wing architects of the ongoing destabilization of the revolution.

    Thus, the current campaign of President Maduro’s government to neutralize the tactic of the counterrevolutionary criminals and their US tutors from worsening the liquidity crunch of Venezuelans is not only laudable but required to ensure stability for the country and its revolution.

    However, as important as stability is to a sovereign country, it is worthless in the absence of the confidence of the people in its currency and government.

    Consequently, one of the critical objectives of the Bolivarian government has to be to instill the confidence of its people in its currency that the right wing counterrevolutionaries are trying to destroy by stealing the 100 bolivars bills out of the country.

    Nonetheless, though stability and confidence in the currency are indispensable for Venezuelans and their revolution, they will be seriously undermined if hyperinflation and the unavailability of basic consumer durables like toothpaste, rice, soaps, toilet tissue and others are not available on the shelves of the supermarkets and grocery stores across the country.

    As such, as important as the phasing out of the 100 bolivars bills is to neutralize the action of the currency criminals and to avoid chaos in the Bolivarian economy and society, it is arguably as important or perhaps even more important to preserve the purchasing power or the value of the currency by taming hyperinflation in the country.

    Furthermore, even with the phasing out of the 100 bolivars bills by the Venezuelan government as tactically astute as it is to defeat the domestic and foreign foes of the revolution, defeating hyperinflation and the shortages of consumer goods are probably as important if not more so strategically.

    There are two interrelated reasons for the latter. First, defeating or at least taming hyperinflation and increasing the availability of consumer goods at the retail outlets countrywide will not only improve the material standard of living of Venezuelans by giving them more purchasing power for their bolivars but also providing more goods for them to purchase.

    Second, as the standard of living of the poor and working folks improve so will the long term chances for the survival of the revolution and the demise of its internal and external foes.

    The foregoing objectives of the revolution to win the currency war and achieve stability and confidence in the currency are not disconnected from the simultaneous necessity to defeat hyperinflation and making available more essential consumer goods like rice, and milk on behalf of the population.

    Indeed, the shortages of consumer goods and the prevalence of hyperinflation in the Venezuelan economy are largely the creation of the the local and foreign foes of the revolution which unfold as short and medium term objectives of the revolution to be resolved.

    Clearly, though the foregoing problems are created primarily by the foes of the revolution, they must be resolved as promptly as possible as by the revolutionary policy makers. The latter are charged with resisting the multiple machinations of the foes of the revolution and are equally charged to defend its gains against its class foes.

    Finally, it is fair to suggest that not only should the revolution win the currency war against the counterrevolutionary pirates and the imperative to achieve stability and confidence in the bolivars by defeating hyperinflation and alleviate the supply of basic consumer goods to the people.

    Additionally, the revolution also has the long term responsibility to build the productive capacity of the economy by diversifying the petroleum based economy.

    The transformation of the Bolivarian economy from a petroleum based economy to a more diverse one in which other sectors such as manufacturing, tourism, agriculture and cleaner renewable forms of energy play a bigger role in the economy is a medium to long term requirement for at least two reasons.

    First, it is going to take some time for the Venezuelan economy to undergo the required structural changes to diversify itself from petroleum to other sectors that will have the productive potential to create jobs, incomes, growth and development when the global price for oil falls.

    Second, the current petroleum base of the Venezuelan economy is a major contributor to fossil fuel driven climate catastrophe that is literally destroying the air, water and the rest of the global environment on which every human being and every life form depends for survival.

    Consequently, it is both indispensable and responsible that the Bolivarian government diversifies the economy away from petroleum to other industries so as to reduce its dependence on this known source of the climate crisis.

    Indeed, as a manifestation of its own transformational diversity, Venezuela’s government will not only be required to create cleaner and renewable industries like solar, wind and geothermal but in the process of this transformation of its economy it will have to stop the exploitation of billions of barrels of oil.

    In other words, the Bolivarian government may have to leave tens of billions of barrels of oil in the earth for the health and well being of Venezuelans and humanity as a whole.

    Further, in the context of the climate crisis that is already negatively affecting many spheres of human life including production, it is a revolutionary act to diversify a petroleum based economy away from an industry that is killing the climate and all forms of life it supports.

    These are all formidable challenges for the Bolivarian revolution.

    However, these challenges must be successfully fought because failure will inevitably mean two things.

    First, the revolution will be in serious danger to survive economically if the economy is not diversified away from oil, an industry in peril of dying given its critical role in the climate crisis and its vulnerability to price fluctuations as a basis on which to build an economy. Second, of the revolution fails to resoundingly resolve the foregoing challenges, its political foes would have won the battle with all the attendant social, economic and political implications for the oligarchy and imperialism but more importantly for the poor, the super-poor and the working majority.

    “Freedom’s fighting for power, wi know not the hour but wi fighting” Bob Marley’s

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