The country’s dire economic situation marked by rampant inflation, chronic shortages of essential goods and power blackouts has deteriorated in recent weeks, with violent food riots erupting across the country.
Trader’s remarks: Crushed by the collapse in oil prices, which is its main export and years of mismanagement, Venezuela is struggling to pay its debts and fund its imports. The World Bank warned in its latest report that inflation in Venezuela – which reached 180% last year is expected to “increase multi-fold in 2016″. Moody’s meanwhile noted that with Venezuela’s foreign reserves are now at an 18 year low.
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