The presentation describes the reason for Venezuela Boliver crisis on a time series basis. year by year the incidents are described and also the steps are taken to resolve the crisis is also told in the slide. The impact of the crisis and the present condition also described briefly.

1. Venezuela Bolivar
Crisis

2. Group Members
1. Tasnim Ansari Hridi – 16221009
2. Syeda Mishma Shawkat – 16221019
3. Md. Mehedi Hassan Bappy – 16221021
4. Debanik Chakraborty – 16221025
5. Syed Ishtiaque Uddin Ahmed – 16221031
6. Tahsin Fariha - 16221043
2

3. HOW IT UNFOLDED

4. Discovering Oil.
4

5. In 9th or
10th century
In 1922 During
1920s
In 1928 In 1935
The indigenous
tribes of Venezuela
found oil
Royal Dutch Shell
geologists at La
Rosa, in Maracaibo
Basin struck oil
annual production
exploded, from just
over a million
barrels to 137
million.
Venezuela became
the largest oil
exporter in the
world
the Venezuelan
bolivar had
ballooned, and oil
shoved aside other
sectors to account
for 90 percent of
exports

6. OPEC
6

7. Quota
They place
quota on the
production &
supply of oil by
different
counties
Main Aim
was to keep
the oil price at
a stabilized
rate.
In 1960s
Venezuela joined
Iran, Iraq, Kuwait,
and Saudi Arabia
as a founding
member of the
Organization of
the Petroleum
Exporting
Countries (OPEC)
In 60s
The Middle
Eastern
countries
started to
export oil

8. PDVSA
8

9. ♠ In 1976, President Carlos Andres Perez nationalized the oil industry, and created state-owned Petroleos de Venezuela,
S.A. (PDVSA)
♠ PDVSA, has not paid the companies that help extract its oil, such as Schlumberger (SLB)
♠ Perez allowed PDVSA to partner with foreign oil companies as long as it held 60 percent equity in joint
ventures
♠ In the spring of 2016, Schlumberger and other companies dramatically reduced operations with PDVSA,
citing unpaid bills.

10. Chavez’s Bolivarian
Revolution
10

11. In 1998 During 1999
to 2010
“Bolivarian
missions”
In 2005 In PDVSA
Chavez was elected
president pledging
to reduce poverty
and inequality
the oil price was
increasing so
heavily.
annual production
exploded, from just
over a million
barrels to 137
million.
Chavez provided
subsidized oil to
several countries in
the region, including
Cuba, through an
alliance known as
Petrocaribe
His programs
provided
employment to
thousands &
thousands of youths

12. Descent into
Dictatorship
12

13. In
2014
Oil prices
were over
$100 a
barrel
Nicolas
Maduro
consolidated
power
through
political
repression,
censorship,
and electoral
manipulation
In mid-
2014
global oil
prices
tumbled
In
2013
Hugo
Chavez
passed
away
In
2016
They
dropped
down as
low as
$26
In
2014
Was to
keep the
oil price at
a stabilized
rate.

14. DICOM
14

15. 15
♠ Early in 2018, Venezuela’s central bank announced that it was devaluing its official exchange
rate by more than 99% and launching a new foreign exchange platform called the DICOM
♠ According to the central bank, the first auction of its new DICOM system gave 30,987.5
bolivars per euro, equivalent to around 25,000 per dollar

16. 16
♠ Reuters reported that the move represented a devaluation of 86.6% with respect to the previous
DICOM rate and 99.6% from the subsidized rate of 10 bolivars per dollar,
♠ The problem is that Venezuela has not taken care of its cash cow
♠ production has dropped to a 13-year low

17. Exchange Rate System
17

18. Venezuela has had a complex
multi-layered exchange rate
system
The Venezuelan bolivar has been under
a controlled system for over 15 years
The last exchange rate before the
introduction of the DICOM was the
SIMADI
the black-market exchange rate
was around 900 bolivars to the
US dollar.
(VEF)
Exchange rate
system
Exchange
rate
In 2016

19. Hyperinflation in
Venezuela
19

20. 20
♠ Inflation has been the largest in the world for the past three years
♠ In 2017, the annual inflation rate increased from 21.4 percent (versus 17.4 percent in the
world) in 1980 to 652.7 percent (3.1 percent in the world)
♠ (IMF) projects it to increase to 2349.3 percent in 2018 (3.3 percent in the world).

21. 21
♠ Prices of goods are doubling every 26 days on average
♠ On July, the inflation rate reached 83,000%.
♠ prices are so high that few Venezuelans can afford the food. Medicine remains in short
supply too.

22. Current Situation
22

23. 1 2 3 4
Caracas, the capital of
Venezuela, has become
the most dangerous city
Constant load shedding People are deprived of
fundamental rights
Country’s public hospital
have fallen apart

24. 5 6 7 8
People are committing
crime to meet their
needs.
Maduro Government has
lost their popularity
Black Marketing
becomes so much active
Migration is taking place
heavily

25. Policies have been taken

26. 26
₪ Introducing Sovereign Bolivar.
₪ Peg the currency with Petro (Digital Oil currency of Venezuela.)
₪ Devaluate the currency by 95%
₪ Hike the Minimal Wages by over 3000 %
₪ Boast Corporate Tax Rate

27. 27
Thank You
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