The Venezuelan bolivar was devalued on Monday to be sold for 55 bolivars per U.S. dollar after currency controls were loosened, representing a weakening of 89 percent for the Venezuelan currency. The move was billed as a tactic to alleviate the shortage of staple goods including medicine and toilet paper, countering the black market rate of 58.6 bolivars to the dollar.
For the first time in over 10 years, Venezuela decreased regulations by creating a new currency exchange called Sicad II. Despite the positive step, only 20 percent of the oil-rich nation’s dollars will be offered at the new exchange rate, with the remaining currency traded at the official exchange rate of 6.3 bolivars per dollar.
Venezuela’s shortages and severe inflation have led to a month-long protest from students and opposition parties. In a broadcast on Monday, Luisa Ortega, the country’s state prosecutor, admitted to wide-spread abuse on the part of security forces sent in to control the demonstrations. At least 34 people have been killed since the protests began in February.