UNITED STATES.- The inequality in Venezuela gets stronger with use of dollara great disparity in the bequeath wages Come in workforce the public and private sector. This is because many people receive salaries in foreign currencytheir purchasing power is thus increased by the price ban for the labor market, pensioners and economists.
Foreign exchange transactions increased in the South American country after the presidential administration Nicholas Maduro relaxed the controls Business in 2019, a measure that has given some companies some oxygen. But that still doesn’t guarantee a full recovery in economic activity after eight years of collapse and annual inflation at 222%, according to official data.
Venezuela before dollarizing its currency
According to information gathered from Reuters, public sector workers are the hardest hit by the government’s change in economic policy, as their salaries are paid in the local currency, the bolivar, and salary increases are sporadic. In the private sector, according to calculations by . at least 63% of salaries paid in foreign currency Venezuelan Financial Observatory.
“We have been suffering from low wages for some time,” he said. Seyyer Chacona 43-year-old nurse working at a hospital in New York San Cristobalcapital of the border state tachira, which suffers from frequent power outages. “I don’t earn enough to change the oil in my car,” the worker added. Venezuela that earns about 250 bolívares a month, which is equivalent to 55 dollars.
Low wages have a knock-on effect, with public sector workers and retirees protesting the demand higher salaries near government offices in several cities in the country. “The hyperinflation that led to the largest dollar-denominated transactions and allowed some activity to recover slightly, deepened the gap between private and public sector wages,” he said. Omar Zambrano Economist and Director of Anova Policy.
Source: Reuters.