Crisis in Venezuela continues – throbbing economic recession and political instability is topped with growing food and basic goods shortages.
Many Venezuelans are now heading across the border to Colombia to buy essentials. As the border trade flips from its traditional direction.
CCTV America’s Stephen Gibbs reports.
Trade at Colombian-Venezuelan border reverses directionCrisis in Venezuela continues. Throbbing economic recession and political instability is topped with growing food and basic goods shortages.
Venezuela, with its weak economy, and weaker currency, was a paradise for smugglers. They could buy cheap goods there and sell them for a huge profit in Colombia.
But now Venezuela’s economy has declined so much there’s almost nothing left to buy. The border between Venezuela and Colombia is supposed to be closed.
Part of a state of emergency ordered by Venezuela’s President Maduro last year was meant to clamp down on smuggling.
But the reality proved that if there is an economic incentive, people will always find a way.
One update in the last few days is the value of the bolivar, the local currency, has devalued quite sharply on the black market. That will be a disincentive for Venezuelans thinking of crossing the border, but against that, the shortages there do continue.