Group 6-FIN201-PPT. New

FPT
U NIV EHello!
RS I TY
We are group 6
Class : BA1401
▪ - Lê Trần Gia Thành ( leader)
▪ - Huỳnh Bạch Mai
▪ - Phạm Trần Thiên Lý
▪ - Nguyễn Khưu Vĩ
▪ - Võ Thị Kiều Trang
▪ - Phạm Huỳnh Hữu Trí. 1
Economic of
Venezuela
1) Introduce of Venezuela.
- Population scale and currency
unit:
- Highest urbanization rate in
Latin America.
-A population of about 28
million.
- Based on oil
- Currency in Venezuela is
Bolivar Fuerte (VE, VEN) 3
Summary of the political situation:
▪ Currently, Nicolás Maduro is President.
▪ -President Donald Trump announced
sanctions on the Venezuelan
government.
▪ -Venezuelan accounts in the U.S. and
banned transactions on measured
assets
▪ -50 countries that does not recognize
Maduro as the legitimate president of
Venezuela 4
Economy and GDP growth rate in recent years:
The instability of oil prices is the

cause of a serious crisis in all
aspects for Venezuela
- Causing inflation, economic
recession, shortage of basic
commodities for people and a
sharp increase of unemployment,
poverty, disease
5
Natural resources and Sales and Exports
For mineral resources in
Venezuela, it is very diverse
and rich but there are two
things that are extremely
interested in this country: gold
and oil
Venezuela is a trade deficit country
because its structure is not like a
developed economy.
6
2) Reasons for
weakening
Venezuela's economy.
A complex idea can be
conveyed with just a single
still image, namely making
it possible to absorb large
amounts of data quickly.
7
What is inflation ?
Inflation is an increase in the
price of goods and services of an
economy over some time.
First, the price increase must be
continuous. In the process of
inflation, the continuous increase
in price does not stop at a stable
level.
8
The oil crisis of 1980
The 1980s oil crisis brought about a
shrinking economy, currency depreciation,
and skyrocketing inflation peaking at 84%
in 1989 and 99% in 1996.
Venezuela is the fifth-largest member of
OPEC in terms of oil production. Oil export
revenue accounts for more than 50% of the
country's GDP and accounts for about 95%
of total exports. Falling oil prices also
caused OPEC to lose their solidarity. 9
The government lacks leadership
capacity
The government-controlled prices and subsidy
policies under President Caldera - before
President Hugo Chávez, leading to budget
deficits and government debt began to
skyrocket. The crisis was the result of those
who followed the populist policies of the
Bolivarian Revolution that began during the
Chávez administration. Through presidents
Hugo Chávez and Nicolas Maduro, Venezuela's
economy is getting worse.
10
The level of inflation of the economy and the
unemployment rate.
November 2016 Venezuela officially
entered a period of hyperinflation.
- The inflation rate in 2014 reached 69%
- The inflation rate then increased to
181% in 2015, 800% in 2016, 4,000%
in 2017 and 1,698,488% in 2018.
11
The United States has imposed sanctions on
Venezuela and black market
CNN reported on 5/8 that President Donald
Trump announced the United States would
expand existing sanctions on Venezuela by
imposing a complete economic embargo
on the country.
-The embargo will freeze assets of the
Venezuelan government and related
entities.
12
The largest creditor of Venezuela China -
Russia and the shortage of basic supplies
Venezuela: Journey from the
"giants" of South America to
giant debtors of Russia and
China.
Venezuela has the largest oil
reserves in the world, but today
90% of the population lives in
poverty, inflation
13
-Convergence of two trends "Dutch disease",
"Bolivar socialism".
In the long run, these factors can lead to
unemployment, as manufacturing jobs move
to lower-cost countries. Non-resource
industries, meanwhile, suffer the loss of
wealth created by resource-based industries.
14
Businesses manipulate exchange rates, gain illicit profits and
citizen of Venezuela do not trust their own currencies
US prosecutors say a businessman

laundered up to $100 million for
Colombian drug trafficking groups by
financing Venezuelan companies in
desperate need of dollars, in another
illustration of how criminal
opportunists profit from the socialist
country’s strict currency control
system.
15
3) Government measures venezuela.
Raise wages and taxes for
workers and industries.
To address rising inflation,
Venezuelan President Nicolas
Maduro recently ordered a
minimum wage increase of
275%, from 40,000 bolivars to
150,000 bolivars (178,000
VND) / month in the context of
the country facing 16
Issuing new currencies.
The Venezuelan government shifted
from the "strong bolivar" to the
"bolivar" that upholds sovereignty. The
new money was discarded at zero, a
“sovereign bolivar” equivalent to a
“strong 100,000 bolivar”, in addition
they issued a "Patriotic Book" which
was valid as an identification card, used
to purchase basic necessities.
17
Effective.
The direct government's control

of cryptocurrencies not only goes
against the founding principles
of the cryptocurrency movement.
18
The prediction of the monetary fund (IMF) on
Venezuela.
▪ Observers predict Venezuela's
inflation will continue to rise
beyond control. The
International Monetary Fund
(IMF) said in June that inflation
in Venezuela would reach 1
million percent this year,
emphasizing that the country
"is trapped in a deep economic
and social crisis". . 19
Summary
Venezuela, a country with unstable
politics and Maduro's ineffective
policies, is gradually bringing the
country to a dead end. According to
economists' study, Venezuela's
economy began to decline before the
oil crisis and the continuous printing of
money to address market demand was
the result of a series of Failure
economic policies of the Venezuelan 20
Thanks For
Listening.
21

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The instability of oil prices is the

US prosecutors say a businessman

The direct government's control

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