MasterFeeds: It's not just the locals taking advantage of the exchange controls in #Venezuela

Subscribe in a reader Add to Google Reader or Homepage

Jan 25, 2014

It's not just the locals taking advantage of the exchange controls in #Venezuela

Venezuela's Currency Controls propel those in the know to the top | TIME.com

"the price of the dollar on the black market rose to 12.5 times the official rate, making common scams taking advantage of the differential between the exchange rates even more lucrative. Some business visitors here are paid expenses in US dollars at the official rate even though they obtain their local currency on the black market. One young European business consultant, who asked not to be named, was able to pay off his entire student loan after a month's work in Venezuela. Those with foreign health insurance plans that pay out in foreign currency are able to make a more than ten-fold profit on claims. For example, a visit to the doctor can turn a profit of $115. This is because an appointment costs around 800 BolĂ­vares, which is noted on the claim form. The insurance company then converts this at the official rate and pays out $127. But, if the patient had initially converted US dollars on the black market to pay for the appointment, the actual cost of the vist would have been around $13. Similarly, with such arbitrage, an MRI scan can net a profit of around $500. A week-long stay in the hospital can be even more lucrative, bringing in more than $10,000. This has turned a few foreigners here into hypochondriacs."

Read more: Venezuela's Currency Controls propel those in the know to the top | TIME.com http://world.time.com/2014/01/23/venezuelas-currency-controls-propels-those-with-connections/#ixzz2rQWjQcMz


No comments:

Post a Comment

___________________________________
Commented on The MasterFeeds

ShareThis


The MasterFeeds

MasterSearch

Categories

MasterFeeds News Finance china money stocks USA Commodities United States debt Gold Venezuela Dollars bonds Markets economics trading Banks FED Hedge funds Asia LatAm Oil default credit metals Mining international relations central_banks CapitalMarkets HFT russia zerohedge Euro Israel Silver democracy India Japan SEC bailout Africa Liberalism Middle East elections insider trading Agriculture Europe FX Iran Tech Trade VC bitcoin copper corruption Brazil CoronaVirus ForEx Gold Silver NYSE WeWork chavez food real estate Arabs EU Facebook France IPO Maduro SWF TARP UN canada goldman government recession revolution war Abu Dhabi Cannabis Capitalism Citigroup Democrats EIA Jobs NASDAQ PDVSA Palestinians Saudi Arabia Softbank Stats Trump Turkey Ukraine demographics ponzi socialism 13F AIG Berkshire Hathaway CBO Cargill Colombia Cryptocurrency ETF Ecuador Emerging Markets Eton Park Google Hamas Hezbollah Housing IMF LME Lebanon Mindich Mongolia NYC OPEC PIIGS Pakistan Paulson Pensions Peru Potash QE Scams Singapore Spain Syria UK Yuan blockchain companies crash cybersecurity data freedom humor islam kleptocracy nuclear propaganda social networks startups terrorism Advertising Airlines Andorra Angola Anti-Israel Apple Automobiles BAC BHP Blackstone COMEX Caracas Coal Communism Crypto DRC DSK Double-Dip EOS Egypt FT Fannie Mae Form Foxconn Freddie GM Gbagbo History ICO Iraq Italy Ivanhoe Ivory Coast JPM Juan Guaido Lava Jato Libya London M+A MasterEnergy Mc Donald's Miami Mugabe Norway Norwegian Odebrecht Oyo PA PPT Palantir Panama Politics QE2 Republicans Rio Ron Paul ShengNu Soleimani South Africa Tokens Tunisia UN Watch UNESCO UNHRC Uber VW Wyclef anti-semitism apparel bang dae-ho cash censorship chile clothing coffee cotton derivatives emplyment foreclosures frontrunning haiti infrastructure labor levi's mortgages philosophy shipping social media treasury women