If Venezuela, until 30.11. The IMF does not provide complete statistics, the collapse of the bond market may break the bonds
Venezuela, after months of economic trouble, is now facing hyperinflation and lack of money. In addition, there are high pressures from abroad and from the country.
Venezuela has a huge economic crisis that still fails to "quit". The continuing problems caused by the unsustainable economic regime are totally exacerbated. Poverty is governed by the state, and employers will not raise wages as quickly as price increases.
The Central Bank of Venezuela is expected to provide the IMF International Monetary Fund with comprehensive statistical information. The Fund expects the Venezuelan central bank to provide more old statistics, but also us, on growth and inflation by November 30. Otherwise, the state is subject to sanctions and other risks. Failure to do so would affect the country because it will have to pay more fines and would probably lose the right to vote.
The Venezuelan Government has so far refused to provide this information, but the pressure exerted on it is still in force and there is a chance that it will reach this area. Expulsion from the Fund could mean losing access to assets related to potential new and existing creditors. This could cause a massive collapse in the sovereign bond market. For a number of multinational companies this would be a big problem.
Monthly inflation in Venezuela is enormous. In October, the consumer price index grew by 148%, which represents only a small slowdown in September 233%. Despite a slight improvement, we can talk about panic and maximum instability, both political and economic.
Because the country is in a catastrophic state and can not even guarantee a stable monetary situation in the country, people are looking for ways to save their money. In Venezuela, we can see a significant increase in the demand for cryptoscopes, which are already very volatile about themselves and pose a considerable risk. However, this is a smaller threat to savings than monetization and depreciation of hyperinflation savings. However, it is doubtful to what extent it is correct and at least to a certain extent – taking into account the specific situation in Venezuela – a safe approach.
Venezuela has the largest oil reserves in the world. However, due to inefficient management, this "natural gift" rarely can not benefit from it. Oil production in the last few months has fallen in the country and oil is traded at about USD0.01. Despite the black gold, Venezuela criticizes this. Without exaggeration, it can be said that it is on the edge of the gap.
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Every day, I monitor the development of European and world financial markets, the world names movement, and the crypts. I work as a TopForex analyst.