Politics, Business & Culture in the Americas

Monday Memo: Venezuela’s Elections – U.S. Immigration – Argentina’s Debt – 2016 Olympics – Venezuelan Currency



Top stories this week are likely to include: Nicolás Maduro and Henrique Capriles kick off their campagins; U.S. business and labor leaders reach an agreement on immigration; Argentina faces a court ruling on its debt; Brazil faces more stadium-related woes; and Venezuela auctions $200 million in foreign currency.

Maduro and Capriles Face Off: Venezuela’s interim president, Nicolás Maduro, said Saturday that opposition presidential candidate Henrique Capriles was trying to incite violence by scheduling his first campaign rally in Barinas state, the birthplace of the late President Hugo Chávez. Maduro and Capriles had both scheduled rallies on Tuesday to kick off their respective campaigns in Barinas state. On Sunday, Capriles announced that he would move the kickoff of his campaign to Monagas state on Tuesday, and campaign in Barinas on Wednesday.

Business and Labor Groups reach Agreement on Immigration: U.S. business leaders and labor groups have reportedly reached an agreement to implement a guest worker program that would introduce a new type of visa – the “W” visa – for low-skilled, year-round temporary workers. The deal was reached during a conference call on Friday between the U.S. Chamber of Commerce and the AFL-CIO that was convened by Senator Charles E. Schumer (D-NY), who is one of eight senators negotiating an overhaul of the U.S. immigration system. Friday’s deal is a positive sign that the bipartisan group of senators will introduce a broad immigration reform bill within the next few weeks.

Argentina’s Day in Court: A New York court is set to rule at any moment on whether Argentina must pay $1.4 billion to holders of its defaulted debt. Argentina submitted a proposal last week to pay back the debt at a discounted rate. If Argentina is forced to pay the holdout bondholders immediately, the country would owe $43 billion in additional claims. Argentina may still appeal to the Foreign Sovereign Immunities Act, a federal law that limits suits against foreign governments.

Another Setback for Brazil’s 2016 Olympics: Brazilian officials suddenly closed Rio de Janeiro’s Engenhão stadium last weekend after declaring the structure unsafe, cancelling a scheduled match between the Botafogo and Vaco da Gama soccer teams in the process. Engenhão is scheduled to host the track and field events in the 2016 Olympic Games, but authorities have said there is a danger that the roof of the stadium could blow off. Meanwhile, Rio officials must find an alternate location for the Confederations Cup in June if repairs to the stadium aren’t completed before then.

Venezuela Auctions Foreign Currency: The Venezuelan government’s decision to auction $200 million in foreign currency to a group of chosen companies last week has triggered a de facto currency devaluation, according to analysts. According to the government, 383 companies participated in an auction under the government’s new Sistema Complementario de Administración de Divisas (Complementary System of Currency Administration—SICAD) plan. The official exchange rate is currently 6.3 Venezuelan bolivars per dollar, but the government did not name the sale price of the dollar in the auction. Investment bank Barclays Capital has said that the government’s decision not to publicize the sale price of the dollar in the auction was a way of “avoiding the political cost of the announcement of a second devaluation.” Venezuelan Finance Minister Jorge Giordani said that the SICAD program will make it possible for individuals to obtain foreign currency with transparency.

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