This is what happens when you print and print money and attempt to fix exchange rates at the same time, eventually the dam bursts. Governments in the end can not keep markets bottled up.
Panic buyers thronged Venezuelan shops over the carnival weekend after the government of Hugo Chávez announced a surprise devaluation, FT reports.
Domestic appliances such as fridges and cookers were in particularly high demand as Venezuelans snapped up goods imported at the now defunct exchange rate of 4.3 bolívars per dollar. From now on they will be imported at 6.3 bolívars per dollar.
Local economists estimate that the “equilibrium” exchange rate, at which foreign currency is no longer relatively cheap for Venezuelans, is about nine bolívars to the dollar.