DolarToday—as many of you well-informed Spanish readers of SuperChillin must already be knowing full well—is an American website that focuses on Latin American politics and finance. The company is more known for being an exchange rate reference to the Venezuelan bolívar, a currency which is not freely convertible; it is also known for its intense focus in monitoring the Venezuelan economy, especially after the happenings of last year.
In this article, we’ll talk about what exactly is going on in Venezuela and why you might need to use DolarToday to monitor the situation. First up, some background.
What is going on in Venezuela?
A socioeconomic and political crisis that began in Venezuela during the presidency of Hugo Chávez has continued into the presidency of Nicolás Maduro. It is marked by hyperinflation, escalating starvation, disease, crime and mortality rates, resulting in massive emigration from the country.
The situation is the worst economic crisis in Venezuela's history and the worst facing a country that is not experiencing war since the mid-20th century. In comparison to historical crises, it is more severe than that of the United States during the Great Depression, of Brazil's 1985–1994 economic crisis, of Zimbabwe's 2008–2009 hyperinflation crisis or that of Russia, Cuba and Albania following the collapse of the Soviet Union.
On 2 June 2010, Chávez declared an "economic war" due to increasing shortages in Venezuela. The crisis intensified under the Maduro government, growing more severe as a result of low oil prices in early 2015, and a drop in Venezuela's oil production from lack of maintenance and investment. The government failed to cut spending in the face of falling oil revenues, and has dealt with the crisis by denying its existence and violently repressing opposition.
The U.N. also stated that political corruption, chronic shortages of food and medicine, closure of companies, unemployment, deterioration of productivity, authoritarianism, human rights violations, gross economic mismanagement and high dependence on oil have also contributed to the worsening crisis.
The crisis has affected the life of the average Venezuelan on all levels. By 2017, hunger had escalated to the point where almost seventy-five percent of the population had lost an average of over 8 kg (over 19 lbs) in weight, and more than half did not have enough income to meet their basic food needs. Reuters reported that a UN report estimated in March 2019 that 94% of Venezuelans live in poverty, and more than ten percent of Venezuelans (3.4 million) have left their country. The UN analysis estimates in 2019 that 25% of Venezuelans need some form of humanitarian assistance. Venezuela led the world in murder rates, with 81.4 per 100,000 people killed in 2018, making it the third most violent country in the world.
What is DolarToday?
DolarToday, as we explained in the opening lines of this article, is an American website that focuses on Latin American politics and finance. The company is more known for being an exchange rate reference to the Venezuelan bolívar, a currency which is not freely convertible; it is also known for its intense focus in monitoring the Venezuelan economy, especially after the happenings of last year.
What is the history of DolarToday?
DolarToday was founded on May 18, 2010. It is headquartered in Miami, Florida, United States. Prior to the election of Nicolás Maduro in 2013, DolarToday was the second most popular exchange rate reference in Venezuela, behind Lechuga Verde. However, when a scandal caused the demise of Lechuga Verde, DolarToday became the most popular exchange rate reference.
The company's website publishes criticisms about the Maduro administration which the founder states "are selected by the site’s writers based in Venezuela".
Some of the terms users search for while trying to learn more about what DolarToday is include, “dolartoday, dolartoday venezuela, dolartoday hoy, dolartoday twitter, @dolartoday, twitter dolartoday, dolartoday noticias, dolartoday venezuela hoy precio, dolartoday colombia, twitter de dolartoday, dolartoday venezuela hoy, dolartoday cucuta, dolartoday venezuela noticias, dolartoday efectivo, dolartoday hoy venezuela precio, dolartoday en venezuela, dolartoday precio de hoy, dolartoday noticias de venezuela, dolartoday en vivo, el dolartoday Venezuela, google venezuela.com.ve, noticias today, dolar day, prensa venezolana de hoy, euro.dolar, valor del dolar oficial, euro y dolar, venezuela today, dollar today precio, venezula today. ”
What are the core features of DolarToday?
Since its inception, DolarToday has provided black market exchange rates that are updated daily for Venezuelans who cannot exchange currencies with the Venezuelan government for the dwindling supply of the US dollar. The company bases its computed exchange rates of the Venezuelan bolívar to the Euro or the United States dollar from the fees on trades in Cúcuta, Colombia, a city near the border of Venezuela.
Currently, with no other reliable source other than the black-market exchange rates, these rates are used by Reuters, CNBC, and several media news agencies and networks. The Economist states that the rates calculated by DolarToday are "erratic", but that they are "more realistic than the three official rates" released by the Venezuelan government. The website maintains that the rates are not manipulated in order to undercut the Venezuelan government.
DolarToday also publishes the implied inflation rate of the Venezuelan bolívar that is based on their currency exchange rates. The implied inflation rate that DolarToday uses is based on information calculated by Steve Hanke of the Cato Institute.
So, hope you learnt a thing or two about the American news as well as financial information site DolarToday that primarily serves Spanish-speaking Latin American folks. Be sure to keep checking SuperChillin for more incredibly informative content.
Subscribe to SuperChillin
Get the latest posts delivered right to your inbox