Tuesday, January 12, 2010

This is why it is so hard to take them seriously. 

First we have the Planning Minister come out and say that the purpose of the devaluation was to promote exports and help small and medium industry.

That is certainly a very welcomed change and good.

Then we have the Commerce Minister talking about how if prices go up too much as a result of the devaluation (which is actually the idea of the devaluation but apparently the commerce minister hasn't gotten the memo yet) the government will start importing school utensils, toys, and even cars and the very overvalued rate of 2.6BsF per dollar.

Finally, four days into this devaluation and no one yet knows at what price dollars from non-oil exports will be exchanged - 2.6 BsF per dollar or 4.3 BsF.

Combine all this with the fact that this represents a 180% degree turn from what they have been saying for the past few years and, well, it is hard to take them seriously.


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