Venezuela next week will launch a new currency exchange mechanism to replace the DICOM rate, also known as SIMADI, President Nicolas Maduro said late on Monday in a televised speech as the Opec nation suffers a deep economic crisis. The oil-rich country currently has two official exchange rates, DIPRO at 10 and SIMADI at 709 bolivars per dollar. On the black market, however, a dollar can fetch more than 3,000 bolivars because official mechanisms do not satiate demand.
"In a process of perfecting the system of collecting, administering and stabilizing the flow of hard currency in Venezuela, we have decided to activate from next week a new model of DICOM," said Maduro, speaking at the close of an exhibit to showcase Venezuela's economy called "Expo Venezuela Powerhouse."
Maduro did not provide the new rate. Currency auctions will be held twice a week, he said. Previous new exchange mechanisms have failed to curb the weakening of the bolivar on the black market and economists widely say Maduro should be overhauling the creaking socialist model instead of tweaking it.
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