LVL: the devaluation of the Bolívar "is independent of monetary conversion" Instagram Electronic Bulletin

The President of Datanalysis, Luis Vicente León, pointed out that there is no significant negative impact on the population resulting from monetary conversion, "which in the Venezuelan case is rather a simple reexpression of the same currency with six zeros less, but no changes in the economic environment that sustains it (or rather does not support it)."

He also indicated through his Twitter social network account that beyond the problems of implementation, such as the brief suspension of banking operations, "this conversion does not affect the value of the money or the assets that the population has today. Expected rounding is compensated up and down and are insignificant."

However, he pointed out that, by not being accompanied by the conversion of a comprehensive adjustment program that would attack the root of the inflationary problem, "the positive effect of restating the currency in lower amounts, which facilitate financial and commercial operations, is very short term."

He commented that the conversion does not restore confidence in the Bolívar: "it has no possibility of achieving this objective, since there is no change that addresses the causes of the problem. It is a reexpression that tries to deal, momentarily, with the operational crisis created by the great figures."

"to stop having a million BS to have a BS means to be worse? it means being the same, because all the figures lose the same six zeros," he added, adding that "it is more comfortable for transactions, but without attacking the real problem, those zeros will be added in prices in a short period."

-devaluation is independent of conversion-

The economist also said that "devaluation is independent of monetary conversion" and added that "thousands of devaluations occurred between conversion and conversion. Expectations of uncertainty may affect value punctually but this is definitely not the cause of devaluation."

"there are many problems in the Venezuelan economy, starting with mistrust, that affect the real value of money, the income of the population, the assets of companies, but monetary conversion should not be one of those variables (and if it happens because of disinformation)," he explained.

He said that monetary conversion does not solve the devaluation of the currency, given that it "has nothing to do with it." "and the recent negative movements Don't make sense either, because there won't be the least real economic impact with this change," he said.

"the devaluation is caused by the distrust of the Bolívar and the fiscal and monetary problems of the country. Without solving them, the probability of the devaluation stopping is nil. You can delay it and dampen it for a while, but it is a rebel river that will always knock down the dams," he emphasized.