Venezuela’s January-September inflation 536 percent: National Assembly

People buy food and other staple goods inside a supermarket in Caracas, Venezuela, July 25, 2017. REUTERS/Ueslei Marcelino

CARACAS (Reuters) – Inflation in Venezuela’s crisis-hit economy was 536.2 percent in the nine months to September, largely due to the rapid depreciation of the local currency on the black market, the opposition-controlled National Assembly said on Friday.

The government stopped releasing price data more than a year ago, but congress has published its own figures since January and they have been close to private economists’ estimates.

As well as the alarming Jan-Sept cumulative rise, the legislative body – which has been sidelined by President Nicolas Maduro’s government – put monthly inflation at 36.3 percent for September, compared with 34 percent in August.

Opponents say Maduro and his predecessor, Hugo Chavez, have wrecked a once-prosperous economy with 18 years of state-led socialist policies from nationalizations to currency controls.

The government says it is victim of an “economic war”, including speculation and hoarding, by pro-opposition businessmen.

The country’s bolivar currency has weakened sharply in recent weeks on the widely-watched black market rate.

On Friday, $1 was worth nearly 27,000 bolivars on the black market, versus 22 when Maduro took power in April 2013 and 18,500 at the start of September this year.

Opposition lawmaker and economist Angel Alvarado said the government’s restriction of dollars available via official currency exchange mechanisms had pressured prices in September.

“The government strategy is only making Venezuelans poorer by the day,” he said, adding that families were now spending 80 percent of income on food.

Prices in Venezuela, which has long had one of the highest inflation rates in the world, rose 180.9 percent in 2015 and 274 percent in 2016, according to official figures, although many economists believe the real data was worse.

(Reporting by Caracas newsroom; Editing by Jonathan Oatis)

Venezuela’s unrest, food scarcity take psychological toll on children

Venezuela's unrest, food scarcity take psychological toll on children

By Alexandra Ulmer

LOS TEQUES, Venezuela (Reuters) – Venezuelan siblings Jeremias, 8, and Victoria, 3, were in their pajamas and preparing to go to bed when a tear gas canister smashed through their family’s kitchen window in early July.

National Guard soldiers were pelting the building in this highland town near Caracas with tear gas canisters as they searched for opposition activists who had been protesting against unpopular President Nicolas Maduro for over three months.

Amid screams and insults from neighbors, soldiers stormed the building and arrested dozens of youths, according to the children’s mother, Gabriela.

Gabriela and her husband Yorth hid the kids in their bedroom closet as the apartment filled with thick gas after seven canisters crashed in. The guards did not enter their apartment, but the family was unable to sleep that night and the apartment reeked for days.

After that, the kids changed.

Jeremias cried and begged to leave Venezuela. His younger sister, previously not even scared of the dark, was terrified every time she heard a loud sound – an object falling, a truck, or thunder.

“She would say: ‘The soldiers are attacking us’ and cry,” said Gabriela, 30, a nurse by training. “That was the trigger for us that we had to get the kids out of here, otherwise it would be even worse for them psychologically.”

A month after the incident, the family sold what it could, packed three suitcases, and left Venezuela by bus with around $250 in their pocket, joining droves fleeing the country.

Out of fear of reprisals, Gabriela asked that their surname and country of residence not be published.

Her children’s case highlights the lasting psychological toll the OPEC nation’s economic and political crisis is having on its youngsters.

Venezuela, home to the world’s largest crude oil reserves, has spiraled deeper into chaos in recent years as Maduro – the narrowly-elected successor of leftist firebrand Hugo Chavez – has cracked down harder on the opposition amid a painful recession blamed by economists on his socialist government’s interventionist policies.

Recently, months of protests demanding early elections interrupted schools, leaving kids holed up at home or exposed to violence. A crippling recession has spawned shortages of products like milk and diapers, while rapid inflation means toys or school uniforms are unaffordable for poor families.

There is no recent data examining the psychological effects of the deprivations on children, but teachers, psychologists, rights activists and two dozen parents interviewed by Reuters suggest it could have a heavy toll.

“From a young age, children are being forced to think about survival,” said psychologist Abel Saraiba at Caracas-based child protection organization Cecodap. He said around half of his 50 patients have symptoms linked to the crisis.

Children are more prone to anxiety, aggression and depression, and could also struggle to relate with peers because they see the outside world as hostile. That could be another hurdle in Venezuela’s eventual reconstruction.

Maduro blames the opposition for traumatizing children and others via protests that often turned violent, with hooded demonstrators throwing stones and Molotov cocktails.

He says his government, which did not respond to a request for comment, has done more for children than previous administrations, pointing to youth orchestras, sports programs and vacation camps.

Yennifer Padron kisses her baby in her house at Petare slum in Caracas. REUTERS/Andres Martinez Casares

Yennifer Padron kisses her baby in her house at Petare slum in Caracas. REUTERS/Andres Martinez Casares

“MOMMY, WHEN IS THE FOOD BOX COMING?”

It is lack of affordable food – a kilo of rice costs around 20 percent of a monthly minimum wage – that is putting the most strain on children from poor families.

Some low-income families have little choice but bring their children to rough food lines at supermarkets or send them to work or beg. Parents say childrens’ games include pretending to find food at the supermarket.

In the most dramatic cases, kids suffer malnutrition and disease.

High up in Caracas’ sprawling Petare slum, waiter Victor Cordova juggles three jobs while his wife Yennifer cares for their three daughters and a baby boy in their tiny home.

The girls sometimes wake their parents in the middle of the night asking for food, and spend much of the day inquiring when government-subsidized food boxes will arrive.

“They’re always asking me: ‘Mommy, when is the food box coming? Will the food box have milk?’ I can’t get it out of their heads,” said Yennifer, 26, rocking little Aaron.

“I tell them they’re too little to worry about that, that they should only worry about studying. But they’re little sponges, they absorb everything.”

A minority of parents, appalled by once-booming Venezuela’s collapse into misery, try to hide the crisis from their kids.

Accountant Suset Gutierrez tells her two sons in the decaying industrial town of Ciudad Guayana that nighttime gunshots are fireworks from parties or exploding car tires.

“I’ve had to vary the stories because they’ve wanted to know about the parties,” said Gutierrez, 47, whose kids also asked why they don’t have more milk or pasta at home.

“I’ve had to invent that it’s because the cows have fallen ill or because heavy rains in other countries mean there’s no wheat.”

Outside Venezuela, Gabriela and her husband, who used to work as a company administrator, have found work selling flowers and at a cafe. They see their children steadily improving.

Once the family gets more economic stability, Gabriela said she will seek psychological help for them.

“They’re happy. The eldest tells me, ‘Look, there’s candy here!'” said Gabriela, laughing. “But if someone even suggests the possibility of going back to Venezuela, he starts to cry.”

(Additional reporting by Maria Ramirez in Puerto Ordaz, Anggy Polanco in San Cristobal, Mircely Guanipa in Punto Fijo, Francisco Aguilar in Barinas; Writing by Alexandra Ulmer; Editing by Girish Gupta, Daniel Flynn and Jonathan Oatis)

Venezuela opposition won’t attend scheduled talks with government

Luis Florido (C), lawmaker of the Venezuelan coalition of opposition parties (MUD) attends a news conference at the National Assembly building in Caracas, Venezuela, September 26, 2017. REUTERS/Ricardo Moraes

By Diego Oré and Andreina Aponte

CARACAS (Reuters) – Venezuela’s opposition said on Tuesday it will not join scheduled talks with President Nicolas Maduro’s government, undercutting a dialogue effort that has been viewed with suspicion by many adversaries of the ruling Socialist Party.

The government has eagerly promoted the talks amid global criticism that Maduro is turning the country into a dictatorship, while the opposition has always insisted the talks should not distract from the country’s economic crisis.

The two sides held separate exploratory conversations with the president of the Dominican Republic earlier this month. But the opposition said the government has not made enough progress on issues such as human rights to warrant full bilateral talks.

“Negotiation is not to go and waste time, to look at someone’s face, but rather so that Venezuelans can have immediate solutions,” opposition leader Henrique Capriles told reporters.

“We cannot have a repeat of last year’s failure,” he said, referring to Vatican-brokered talks in 2016 that fell apart after the opposition said the government was simply using them as a stalling tactic.

The Information Ministry did not immediately respond to a request for comment.

The opposition wants a date for the next presidential election, due by the end of 2018, with guarantees it will be free and fair. It is also calling for freedom for hundreds of jailed activists, a foreign humanitarian aid corridor and respect for the opposition-led congress.

With Spain pushing for the European Union to adopt restrictive measures against members of the Venezuelan government, Maduro may be hoping to dodge further sanctions.

The United States has issued several rounds of sanctions against Venezuela, primarily in response to the creation of an all-powerful super body called the Constituent Assembly that was elected in a July vote the opposition labeled fraudulent.

Many countries have refused to recognize the assembly, which Maduro insists has brought peace to the country of 30 million. He says opposition leaders are coup-plotters seeking to sabotage socialism in oil-rich Venezuela under the guise of peaceful protests.

Amid a fourth straight year of recession, millions of Venezuelans are suffering food shortages and rampant inflation, which the government blames on an “economic war” led by the opposition and fueled by recent sanctions.

(Reporting by Diego Ore and Andreina Aponte, Writing by Alexandra Ulmer; editing by Diane Craft and Dan Grebler)

Venezuela doctors in protest urge stronger WHO stance on health crisis

People hold letters which read "Hunger" during a protest outside the World Health Organization (WHO) office in Caracas, Venezuela September 25, 2017. REUTERS/Ricardo Moraes

By Alexandra Ulmer

CARACAS (Reuters) – Venezuela’s doctors, fed up with what they called the World Health Organization’s passive attitude toward the country’s deep medical crisis, protested at the agency’s Caracas office on Monday to demand more pressure on the government and additional assistance.

Venezuela is suffering from a roughly 85 percent shortage of medicines, decrepit hospital infrastructure, and an exodus of doctors during a brutal recession.

Once-controlled diseases like diphtheria and measles have returned due in part to insufficient vaccines and antibiotics, while Venezuelans suffering chronic illnesses like cancer or diabetes often have to forgo treatment.

Malnutrition is also rising, doctors say.

Rare government data published in May showed maternal mortality shot up 65 percent while malaria cases jumped 76 percent. The former health minister was fired shortly after the bulletin’s publication, and it has not been issued since.

In the latest protest by an umbrella group of health associations, dozens of doctors and activists gathered at the Pan American Health Organization (PAHO), the WHO’s regional office, urging the agency step up pressure on Nicolas Maduro’s leftist government and provide more aid during its 29th Pan American Sanitary Conference this week.

“There’s been a complicit attitude because they haven’t denounced things,” Dr. Rafael Muci said during the rally.

“This is an unlivable country, and no one is paying attention,” he said, adding he earns about $8 a month at a state hospital.

In a statement on Monday, PAHO stressed its main role was to provide “technical cooperation” and highlighted recent help in providing vaccines.

The Venezuelan government, which accuses activists of whipping up panic and the business elite of hiding medicines, did not respond to a request for comment.

Venezuelans seeking certain drugs often have to scour pharmacies, seek foreign donations or turn to social media.

Sociologist Maria Angelica Casanova, 51, has struggled to find psychiatric medicines for a year. “Sometimes they come, sometimes they don’t. It’s serious,” she said, as passers-by shouted “Down with Maduro!”

Measles, which were controlled after a mass immunization in the 1990s, has returned to Venezuela’s jungle state of Bolivar, PAHO data show.

As the crisis stokes emigration, Venezuela’s health problems could be exported, doctors warned.

“We don’t know how many people who are emigrating could have some of these pathogens in incubation period,” said Andres Barreto, an epidemiologist who had participated in the measles vaccination drive.

(Reporting by Alexandra Ulmer; Additional reporting by Johnny Carvajal; Editing by Richard Chang)

Trump slaps travel restrictions on North Korea, Venezuela in sweeping new ban

International passengers wait for their rides outside the international arrivals exit at Washington Dulles International Airport in Dulles, Virginia, U.S. September 24, 2017.

By Jeff Mason and Phil Stewart

WASHINGTON (Reuters) – President Donald Trump on Sunday slapped new travel restrictions on citizens from North Korea, Venezuela and Chad, expanding to eight the list of countries covered by his original travel bans that have been derided by critics and challenged in court.

Iran, Libya, Syria, Yemen and Somalia were left on the list of affected countries in a new proclamation issued by the president. Restrictions on citizens from Sudan were lifted.

The measures help fulfill a campaign promise Trump made to tighten U.S. immigration procedures and align with his “America First” foreign policy vision. Unlike the president’s original bans, which had time limits, this one is open-ended.

“Making America Safe is my number one priority. We will not admit those into our country we cannot safely vet,” the president said in a tweet shortly after the proclamation was released.

Iraqi citizens will not be subject to travel prohibitions but will face enhanced scrutiny or vetting.

The current ban, enacted in March, was set to expire on Sunday evening. The new restrictions are slated to take effect on Oct. 18 and resulted from a review after Trump’s original travel bans sparked international outrage and legal challenges.

The addition of North Korea and Venezuela broadens the restrictions from the original, mostly Muslim-majority list.

An administration official, briefing reporters on a conference call, acknowledged that the number of North Koreans now traveling to the United States was very low.

Rights group Amnesty International USA condemned the measures.

“Just because the original ban was especially outrageous does not mean we should stand for yet another version of government-sanctioned discrimination,” it said in a statement.

“It is senseless and cruel to ban whole nationalities of people who are often fleeing the very same violence that the U.S. government wishes to keep out. This must not be normalized.”

The American Civil Liberties Union said in a statement the addition of North Korea and Venezuela “doesn’t obfuscate the real fact that the administration’s order is still a Muslim ban.”

The White House portrayed the restrictions as consequences for countries that did not meet new requirements for vetting of immigrants and issuing of visas. Those requirements were shared in July with foreign governments, which had 50 days to make improvements if needed, the White House said.

A number of countries made improvements by enhancing the security of travel documents or the reporting of passports that were lost or stolen. Others did not, sparking the restrictions.

The announcement came as the U.S. Supreme Court prepares to hear oral arguments on Oct. 10 over the legality of Trump’s previous travel ban, including whether it discriminated against Muslims.

 

NORTH KOREA, VENEZUELA ADDED

Trump has threatened to “destroy” North Korea if it attacks the United States or its allies. Pyongyang earlier this month conducted its most powerful nuclear bomb test. The president has also directed harsh criticism at Venezuela, once hinting at

a potential military option to deal with Caracas.

But the officials described the addition of the two countries to Trump’s travel restrictions as the result of a purely objective review.

In the case of North Korea, where the suspension was sweeping and applied to both immigrants and non-immigrants, officials said it was hard for the United States to validate the identity of someone coming from North Korea or to find out if that person was a threat.

“North Korea, quite bluntly, does not cooperate whatsoever,” one official said.

The restrictions on Venezuela focused on Socialist government officials that the Trump administration blamed for the country’s slide into economic disarray, including officials from the Bolivarian National Intelligence Service and their immediate families.

Trump received a set of policy recommendations on Friday from acting Secretary of Homeland Security Elaine Duke and was briefed on the matter by other administration officials, including Attorney General Jeff Sessions and Secretary of State Rex Tillerson, a White House aide said.

The rollout on Sunday was decidedly more organized than Trump’s first stab at a travel ban, which was unveiled with little warning and sparked protests at airports worldwide.

Earlier on Sunday, Trump told reporters about the ban: “The tougher, the better.”

Rather than a total ban on entry to the United States, the proposed restrictions differ by nation, based on cooperation with American security mandates, the threat the United States believes each country presents and other variables, officials said.

Somalis, for example, are barred from entering the United States as immigrants and subjected to greater screening for visits.

After the Sept. 15 bombing attack on a London train, Trump wrote on Twitter that the new ban “should be far larger, tougher and more specific – but stupidly, that would not be politically correct.”

The expiring ban blocked entry into the United States by people from the six countries for 90 days and locked out most aspiring refugees for 120 days to give Trump’s administration time to conduct a worldwide review of U.S. vetting procedures for foreign visitors.

Critics have accused the Republican president of discriminating against Muslims in violation of constitutional guarantees of religious liberty and equal protection under the law, breaking existing U.S. immigration law and stoking religious hatred.

Some federal courts blocked the ban, but the U.S. Supreme Court allowed it to take effect in June with some restrictions.

 

(Additional reporting by James Oliphant, Yeganeh Torbati, and Lawrence Hurley; Editing by Peter Cooney)

 

Canada to impose sanctions on Venezuela’s Maduro and top officials

FILE PHOTO: Venezuela's President Nicolas Maduro speaks during his weekly broadcast "Los Domingos con Maduro" (The Sundays with Maduro) in Caracas, Venezuela September 17, 2017. Miraflores Palace/Handout via REUTERS

By David Ljunggren

OTTAWA (Reuters) – Canada will impose targeted sanctions against 40 Venezuelan senior officials, including President Nicolás Maduro, to punish them for “anti-democratic behavior,” the foreign ministry said on Friday.

Canada’s move, which followed a similar decision by the United States, came after months of protests against Maduro’s government in which at least 125 people have been killed. Critics say he has plunged the nation into its worst-ever economic crisis and brought it to the brink of dictatorship.

“Canada will not stand by silently as the government of Venezuela robs its people of their fundamental democratic rights,” Foreign Minister Chrystia Freeland said in a statement.

The measures include freezing the assets of the officials and banning Canadians from having any dealings with them.

The actions were “in response to the government of Venezuela’s deepening descent into dictatorship,” Canada said.

There was no immediate reaction from Caracas, where the government established a pro-Maduro legislative superbody that has overruled the country’s opposition-led Congress.

Maduro has said he faces an armed insurrection designed to end socialism in Latin America and let a U.S.-backed business elite get its hands on the OPEC nation’s crude reserves.

The United States imposed sanctions on Maduro in late July and has also targeted around 30 other officials.

The Canadian measures name Maduro, Vice President Tareck El Aissami and 38 other people, including the ministers of defense and the interior as well as several Supreme Court judges.

Canada is a member of the 12-nation Lima Group, which is trying to address the Venezuelan crisis. A government official said Freeland wanted to host a meeting of the group within the next 60 days.

Cyndee Todgham Cherniak, a trade sanctions expert at Toronto law firm LexSage, said although limited in scope, the Canadian measures were symbolic.

“When you join other countries … it makes the message louder,” she said by phone.

Canadian Prime Minister Justin Trudeau said on Thursday he believed there was a chance for a political solution.

“This is a situation that is obviously untenable. The violence … needs to end and we are looking to be helpful,” he told reporters at the United Nations.

Experts say individual measures have had little or no impact on Maduro’s policies and that broader oil-sector and financial sanctions may be the only way to make the Venezuelan government feel economic pain.

U.S. President Donald Trump last month signed an executive order that prohibits dealings in new debt from the Venezuelan government or its state oil company.

Earlier this month, Spain said it wanted the European Union to adopt restrictive measures against members of the Venezuelan government.

(Reporting by David Ljunggren; Editing by Rosalba O’Brien and Jonathan Oatis)

China offers support for strife-torn Venezuela at United Nations

FILE PHOTO: Chinese Foreign Minister Wang Yi (L) shakes hands with United Nations Secretary General Antonio Guterres prior to their meeting at U.N. headquarters in New York, U.S., September 18, 2017. REUTERS/Brendan McDermid

BEIJING (Reuters) – China believes that the Venezuelan government and people can resolve their problems within a legal framework and maintain national stability, Chinese Foreign Minister Wang Yi told his Venezuelan counterpart at the United Nations.

At least 125 people have been killed in four months of protests against President Nicolás Maduro’s government, which has resisted calls to bring forward the presidential election and instead set up a pro-Maduro legislative superbody called a Constituent Assembly that has overruled the country’s opposition-led Congress.

U.S. President Donald Trump said on Monday he wanted democracy restored soon in Venezuela and warned that the United States might take additional measures to apply pressure on the oil-producing nation.

China, a good friend of Venezuela’s, has brushed off widespread condemnation from the United States, Europe and others about the situation in the country.

Wang told Venezuelan Foreign Affairs Minister Jorge Arreaza on Tuesday on the sidelines of a U.N. meeting that the two countries have an all-round strategic partnership, Chinese state news agency Xinhua said on Wednesday.

“China’s policy towards Venezuela will not change,” the report cited Wang as saying.

China has always upheld the principle of non-interference in the internal affairs of other countries, and believes Venezuela’s government and people have the ability to resolve problems via talks within a legal framework and protect national stability, Wang added.

“The international community should take a fair and objective stance and play a constructive role,” he said.

China and oil-rich Venezuela have a close diplomatic and business relationship, especially in energy.

(Reporting by Ben Blanchard; Editing by Michael Perry)

Latin American nations seek Venezuela crisis mediation

President of Venezuela's National Constituent Assembly Delcy Rodriguez (3-L) talks to the media next to members of the Parlasur, the parliament of the Mercosur trade bloc, after their meeting in Caracas, Venezuela September 15, 2017. REUTERS/Marco Bello

By Jorge Pineda and Andrew Cawthorne

SANTO DOMINGO/CARACAS (Reuters) – Various Latin American nations will join an attempt to mediate Venezuela’s political crisis in new talks later this month, the president of the Dominican Republic said on Thursday.

Danilo Medina hosted high-level delegations from Venezuela’s feuding government and opposition for two days in the latest foreign-led effort to ease a standoff alarming the world.

“We advanced definition of an agenda on Venezuela’s big problems. A commission of friendly countries was agreed,” the Dominican leader told reporters, saying Mexico, Chile, Bolivia, Nicaragua would join the process with others to be announced.

The next talks would be held on Sept. 27, again in the Dominican capital Santo Domingo, he added.

Mexico and Chile have been bitterly critical of President Nicolas Maduro’s socialist government over rights and democracy issues, while fellow leftist-led Bolivia and Nicaragua are staunch allies.

Venezuelan’s government is eager to ease foreign censure of and its delegates came out of Thursday’s talks smiling.

“A dialogue of peace is being installed so that Venezuela can resolve its affairs among Venezuelans,” senior Socialist Party official Jorge Rodriguez told reporters.

Earlier, opposition leaders, who faced a backlash from supporters after failed talks with Maduro last year, insisted they had only traveled to push long-standing demands, including a presidential election and the release of jailed activists.

Decrying Maduro as a “dictator” who has wrecked the OPEC member’s once-prosperous economy, Venezuelan opposition leaders led street protests earlier this year seeking his removal that led to the deaths of at least 125 people.

Maduro says they were seeking a coup with U.S. connivance.

Though both sides met the Dominican president this week, it was unclear if they had also sat down and talked together.

In a statement after Thursday’s meetings, the opposition Democratic Unity coalition said it had accepted an invitation by Medina and the United Nations to an “exploratory meeting” in the hope of advancing Maduro’s exit by constitutional means.

“Only through democratic and non-violent change will it be possible to overcome the current social and economic tragedy afflicting all Venezuelans,” it said.

The coalition said six countries would be acting as guarantors, and any final accord must include a date for a presidential vote, reform of the national electoral board, release of political prisoners, and emergency humanitarian aid.

Any agreement should go to a referendum, it added.

The government delegation included Delcy Rodriguez, leader of Venezuela’s all-powerful and pro-Maduro Constituent Assembly whose creation brought widespread foreign condemnation as it overrides the existing opposition-led congress.

The opposition delegation was led by Julio Borges, head of that congress, fresh from a trip to Europe where he was received by the leaders of Germany, France and Spain.

Maduro routinely calls for dialogue, but his adversaries suspect he may use talks as a stalling tactic to help his image without producing concrete results. A dialogue brokered by former Spanish Prime Minister Jose Luis Rodriguez Zapatero and the Vatican in 2016 did nothing to advance opposition demands.

(Additional reporting by Diego Ore in Caracas; Writing by Andrew Cawthorne; Editing by Jonathan Oatis and Grant McCool)

Venezuela suspends dollar auctions, blames U.S. sanctions

A woman changes dollars for bolivars at a money exchange in Caracas, Febreuary 24, 2015. REUTERS/Carlos Garcia Rawlins

CARACAS (Reuters) – Venezuela on Wednesday temporarily suspended the sale of U.S. dollars through its Dicom auction system, following an announcement last week that it was moving away from the greenback in response to U.S. sanctions.

The United States in August prohibited dealings in new debt from Venezuela and state oil company PDVSA in response to the creation of a new legislative superbody that critics call the consolidation of a dictatorship.

President Nicolas Maduro last week said the crisis-stricken OPEC country would create a basket of currencies to “free” Venezuela from the dollar, using the Dicom auction system.

Upcoming auctions are deferred until “the necessary adjustments are made to our system to incorporate other currencies” and to resolve problems associated with its correspondent bank, Dicom said via its Twitter account.

Dicom as of August was auctioning dollars for 3,300 bolivars. The system serves as a complement to the country’s currency control system that provides greenbacks at 10 bolivars for essential items such as food and medicine.

Dollars on the black market now fetch 22,431 bolivars, according to website DolarToday.com, which is the principal for the black market rate.

Dicom has auctioned only $72 million since it began operations three months ago. Business leaders say this is a fraction of what companies need to pay to import goods, leaving them reliant on the black market.

Economists say the currency controls are the primary driver of the country’s economic dysfunction, which includes triple-digit inflation and chronic product shortages.

Maduro says the country is victim of an “economic war” led by political adversaries with the help of Washington.

(Reporting by Corina Pons and Deisy Buitrago writing by Brian Ellsworth; editing by Jonathan Oatis)

France says Venezuela talks to take place, warns of sanctions

Venezuela's President Nicolas Maduro speaks during a meeting with ministers at Miraflores Palace in Caracas, Venezuela September 12, 2017. Miraflores Palace/Handout via REUTERS

PARIS (Reuters) – Venezuela’s government and opposition will hold a round of talks in the Dominican Republic on Wednesday, France’s foreign minister said on Tuesday, warning Caracas that it risked EU sanctions if it failed to engage in negotiations.

Venezuela was convulsed for months by demonstrations against leftist President Nicolas Maduro, accused by critics of knocking the oil-rich country into its worst-ever economic crisis and bringing it to the brink of dictatorship.

“I was happy to learn that dialogue with the opposition would restart tomorrow in the Dominican Republic,” Jean-Yves Le Drian said in a statement after meeting his Venezuelan counterpart, Jorge Arreaza Montserrat, in Paris.

Venezuela’s Democratic Unity Coalition said it would send a delegation to meet with Dominican President Danilo Medina to discuss the conditions under which dialogue could be held, but denied that any talks as such had begun.

“The invitation by (Medina) does NOT represent the start of a formal dialogue with the government,” the coalition said in a statement. “To begin serious negotiations, we demand immediate concrete actions that show true willingness to solve problems rather than to buy time.”

The statement reiterated long standing opposition demands including the release of political prisoners, respect for the opposition-run congress and measures to ease a crippling economic crisis.

Le Drian said Wednesday’s meeting would involve Medina and former Spanish Prime Minister José Luis Rodriguez Zapatero.

United Nations Secretary-General Antonio Guterres expressed his full support for the talks.

“The Secretary-General encourages the Venezuelan political actors to seize this opportunity to demonstrate their commitment to address the country’s challenges through mediation and peaceful means,” U.N. spokesman Stephane Dujarric said in a statement.

Maduro routinely calls for dialogue with the opposition, but his adversaries see dialogue as a stalling mechanism that burnishes the government’s image without producing concrete results.

In a televised broadcast on Tuesday evening, he voiced renewed support for dialogue and said he was sending Socialist Party heavyweight Jorge Rodriguez to represent the government in the Dominican Republic.

A dialogue process brokered by Zapatero and backed by the Vatican in 2016 did little to advance opposition demands.

Many Maduro critics believe opposition leaders were duped in that dialogue process, and have grown suspicious of Zapatero as an intermediary.

Like fellow-EU member Spain a few days earlier, Le Drian also warned Arreaza that if the situation continued there would be consequences.

“I reminded him of the risk of European sanctions and the need to rapidly see evidence from Venezuela that it is ready to relaunch negotiations with the opposition and engage in a sincere and credible process,” he said.

 

(Reporting by John Irish in Paris and Diego Ore and Brian Ellsworth in Caracas; Additional reporting by Michelle Nichols at the United Nations; Writing by Brian Love and Andrew Cawthorne; Editing by Leigh Thomas and Sandra Maler)