What purchasing power does $5 hold in present-day Venezuela? Is it considered significant within the local economy?
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I was in Venenzuela in January 2022, at tge time, the country was experiencing hyperinflation, severely diminishing the purchasing power of its currency, the bolĂvar.
$5 USD would have a significantly higher purchasing power compared to the local currency. However, due to the volatile nature of Venezuela’s economy, it’s challenging to provide an accurate assessment without real-time data.
Generally, in hyperinflationary economies, even relatively small amounts of stable foreign currency like USD can hold significant purchasing power for basic goods and services.
The market is highly speculative! There’s an extremely wide gap in how most properties are perceived in terms of value, depending on your assessment of the short and long-term political and social developments in the country. My relatives often encourage me to seize recurring incredible bargains: from luxurious apartments to charming coastal houses just a few hundred meters from the beach, all for as little as USD 50k, 40k, or even 20k. The challenge lies in the uncertainty of whether prices will plummet even further next year - perhaps due to collapsed roads leading to the buildings, the threat of armed gangs raiding properties at any time (with or without occupants), or the possibility of condominiums ceasing to function altogether, and so on.
You could take the risk and potentially reap substantial profits in a few years… or perhaps not. It’s up to you to decide!