Supply and Demand...with Venezuelan characteristics;
A third currency exchange system has been introduced in Venezuela in efforts to stabilise the value of the bolivar, called Sicad II, which will facilitate daily currency auctions at prices determined by “supply and demand”, according to Vice President for the Economic Area Rafael Ramirez.
State-owned companies will be permitted to trade currency and bonds below the official exchange rate of Bs. 6.30 to US$ 1. However, the government will continue to preside over all transactions.
....According to the government, the system is based on a long shelved bond swap mechanism known as “permuta”.Permuta translates into 'barter'.
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