While Venezuela CDS suggest the country’s default odds remain well over 90%, and its currency on the black market continues to plunge into the abyss of hyperinflation, something odd happened today: Venezuela’s government issued $5 billion in dollar debt for the first time in more than five years, selling bonds in an opaque transaction to the state bank Banco de Venezuela SA and the central bank, Reuters and Bloomberg report. What makes this “unorthodox operation” particularly strange, is that the government is effectively selling debt, and raising dollar funds from itself – it owns both the Banco de Venezuela and the central bank; it is also strange in that the transaction, according to Reuters, does not immediately bring in new funds for the cash-strapped OPEC nation. Continue reading »
Thousands of people have taken to the streets of Caracas for a third mass rally this week to support Venezuelan President Nicolas Maduro amid efforts by the opposition to topple him.
Maduro addressed the rally on Friday, saying the Latin American country has “triumphed” against US-backed efforts to destabilize it after an opposition strike planned for this week fell flat.
“The strike called by the fascist right has been a failure. They failed. Peace, work and coexistence have triumphed. Venezuela has triumphed,” Maduro said at the demonstration. Continue reading »