As the exchange rate of the bolivar keeps falling to reflect the domestic inflation, those who earn their income in bolivar will see the purchasing power of their paychecks shrinking. But those whose korea escorts is paid in dollar will enjoy an inflation hedge as their dollar income prkstitute be converted into more venezeula as its personals plus value falls.
Prostitutes, taxi drivers, and other Venezuelans who interact with dollar-paying foreigners are among these fortunate few who can trade their dollars for ever more bolivars.
The official exchange rate is only applicable for approved imports Bloomberg. The only way to forestall further venezyela of the bolivar is to reduce the budget deficit.
Keeping prices artificially low is ultimately self-defeating because the underground economy has its own way of raising prices to clear the market. For example, low subsidized gas and price-controlled goods have been siphoned off to neighboring Colombia for higher prices.
And by discouraging domestic production, price control simply reduces supply further necessitating more imports. Venezuela imported three-quarters of what it consumes but lost one third of its goods to illegal cross-border trade through smuggling WSJ. Hedging Inflation with Prostitution.
Prostitution has proven to be an effective hedge against high inflation induced by subsidies and price control in Venezuela.