So Venezuela is selling U$3Bn in dollar bonds, most probably this week, to its local market.
Here's what local experts are saying:
Here's what local experts are saying:
The bolivar will likely extend its rebound in the parallel market in the run-up to the $3 billion offering, said Russell Dallen, head trader at Caracas Capital Markets at BBO Financial Services Inc. The rally may stall after the sale, he said.“Once the new issue comes to market -- unless the government has some other ongoing plan up their sleeve to shore up the rate -- all bets are off and we would expect to see the bolivar return to its consistent path of devaluation and continued deterioration,” Dallen said.
And this is what it means.
Otto sez: When you own machinery that produces 3.2 million barrels of oil a day, those barrels of oil cost $6 each to produce and you sell 3/4 of them overseas for over $60, you don't follow rules. You make them.
"It's not fair! Thye're not playing by the rules! The VEF should have been at 10 by now, but don't worry, fee paying clients, we're still right even when we're wrong."
Otto sez: When you own machinery that produces 3.2 million barrels of oil a day, those barrels of oil cost $6 each to produce and you sell 3/4 of them overseas for over $60, you don't follow rules. You make them.