José Gil Yepes, director of the Datanálisis research firm, said that the Venezuelan Central Bank’s regular injections of foreign currency into the banking system have only a short-term effect and do not address the causes of the bolívar’s depreciation. According to him, the stability of the national currency depends on growth in production, employment, productivity, competitiveness, and economic stability—not on a temporary increase in the money supply. The expert stressed that long-term stabilization requires investment and export diversification, which would reduce the country’s dependence on sharp fluctuations in global oil prices.
Full version: Gil Yepes warns that BCV interventions are insufficient to halt the devaluation