Originally Posted by
flyerman770
The rate was fixed at a 1,3 at 1999-2000 already, but the currency controil started in mar. 2003
Good points; restricting the common Jose's access to foreign currency is the problem here, thus the insane demand for it.
Thank you for helping me out. Its good to hear that some people actually understand and know that not every country is run like the US with police and government and dollars and banks and food...
Political Economy (and East Asian studies...) is what I studied in college. This is a topic I find extremely fascinating from a sociological standpoint as well as a political one. This sort of dual currency/exchange regime was common in the 80s in Latin Amer countries trying to battle hyperinflation but now only Venezuela, Zimbabwe (which is a complete mess), Cuba and Burma are the only few countries with any real solid forex black market (there may be others but they're minor players in the world as it is).
It's fascinating to me since those who are middle class with some contacts are having a field day exploiting the system for what it's worth... the Panama/Aruba/Curacao trips for instance. Also the intrepid trying to make some VEB to feed their own family by brokering USD to locals who have the VEB to buy US$ thus taking their cut of the bid/ask spread.
It's really screwing up their economy for the reasons I stated above. It's akin to Cuba where those who have dollars coming in have nice houses and refrigerators and those who do not are stuck in commie-issued shacks. No different at all... just how the cards fell for some people. The rich get richer but they're buying cars and electronics faster than they can be imported and selling them for the same price just six months later. Try buying a Toyota 4Runner or Landcrusier in CCS... if you can find one for sale. With 12 cent gas they're sold for the next year or so.