An alleged coup attempt on the government of Venezuela and following protests has diverted attention from the most drastic economic decision taken by the Maduro administration—liberalizing monetary policy.
On February 11th, the Bolivar was devalued by 69% as it was partially taken off the peg with the U.S. dollar. The new exchange rate, which opened at 170 Bolivares to the dollar, is the third exchange tier in a complex three-tiered controlled currency system. The other two tiers trade at 6.3 and 12 to the dollar. The cheapest rate is still the black market exchange rate, which offers 190 Bolivares to the dollar.