Venezuela’s economy is in dire straights. Its productivity has plummeted, its debt has skyrocketed, its currency is the weakest it has ever been as far as available data shows. And it’s about to take another hit in March of next year in an emergency effort to bring runaway inflation under control and draw foreign investment into its ailing oil industry.
Venezuela on the Brink
Strict currency controls at Venezuela’s central bank limiting the amount of USD allowed to circulate within its borders have lead to a shortage of dollars, strengthening the value of the USD and weakening Venezuela’s bolivar, resulting in skyrocketing inflation from 17.2% in November of 2012 to 46.85% in October this year.