The parallel dollar trades below the Bs 12 threshold | El dólar paralelo cotiza por debajo del umbral de los Bs 12

By Juan Carlos Salinas, El Deber:

El dólar paralelo cotiza por debajo del umbral de los Bs 12

The foreign currency shows a gradual downward trend, although analysts warn that its price is linked to the economic and political signals from the new authorities.

The exchange rate of the dollar in the parallel market showed a downward trend last week. Various platforms displayed rates ranging from Bs 12.40 to Bs 12.50, which later fell to Bs 10.50 on the night of Friday, October 31, before stabilizing below the Bs 12 threshold.

By the afternoon of November 1, the parallel dollar was trading between Bs 11.50 and Bs 11.56.

According to economist Germán Molina, the behavior of the foreign currency is tied to the signals being sent by the new authorities.

“The meeting of the president-elect in the United States, the most important market in the world, does nothing but bring a certain degree of confidence to the market. The announcement of a full commercial and political relationship with Trump and the renewed approaches with multilateral organizations are positive signals that, in a way, balance the expectations of economic agents—and this has an impact on the unofficial dollar rate,” Molina pointed out.

The foreign currency had reached Bs 20 at times of political uncertainty—during the attempted coup or when Yacimientos (the state oil company) announced there were no dollars available for fuel imports. This forced the state-owned company into the virtual USDT market, where high demand for USDT caused an imbalance that led to an increase in the virtual dollar’s exchange rate.

Molina considers it risky to claim that the parallel dollar will stabilize or continue to fall. He believes the current situation cannot be explained solely from a technical and economic standpoint but must also take into account the expectations of the public and economic actors.

“To ignore these factors is to overlook the full picture of the parallel dollar’s behavior and its impact on both the macroeconomy and citizens’ personal finances,” Molina reflected.

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