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Opinion | Dollarization Is Helping the Collapsed Venezuelan Economy, for Now

Mount Equity Group Tokyo, Japan > News > Markets > Opinion | Dollarization Is Helping the Collapsed Venezuelan Economy, for Now

An improvised dollar economy is also not completely immune to hyperinflation. Prices are still going up, and they’re even higher now that they’re set in dollars. This makes it hard for many Venezuelans to afford everyday items. Dilmary Rivas, a neighbor of Ms. Aguilar, earns the equivalent of $120 per month working as a house cleaner. Three years ago, this income was enough to buy three months’ worth of groceries — if she was lucky enough to find them after standing hours in line. Today, her weekly wages allow for just the basics: sugar, coffee, milk, corn flour, cheese, cooking oil. Staples are no longer scarce, but they’re so expensive that other necessities like clothes and toiletries have become a luxury.

“If I buy a pair of socks, I can’t buy eggs,” Ms. Rivas said. “It’s like I traded one problem for another.”

The Venezuela of Hugo Chávez’s professed socialism — with food subsidies that initially helped…

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