Venezuelan President Nicolas Maduro at a rally in Caracas on November 12, 2013. (AFP PHOTO/Leo RAMIREZ)
Even with its vaunted new focus on security, the government of Nicolas Maduro will have a difficult time ignoring the ongoing consequences of Venezuela’s economic crisis. In yet another reminder of the dismal state of the country’s currency, one European airline has now entirely suspended sales of tickets in bolivars. The Spanish airline Air Europa is now only accepting payments from Venezuelans in dollars or euros, leaving many with tightened options for booking international travel.
Other airlines might not be too far behind in implementing the policy in the country as its government has lagged on the customary exchange of bolivars into dollars which has left it owing $160 million to Air Europa alone. There are already indications that airlines have begun to institute measures to curtail commerce with the bolivar — including cutting down inventory in Venezuela, a move which has drastically reduced the number of airline seats available to local patrons.
As international carriers respond to the effects of Maduro’s policy of refusing to devalue the bolivar to its market value, Venezuelan travelers will increasingly find themselves with very limited access to travel options outside of the country — and likely other forms of international commerce as well. While far from being the most devastating consequence of Venezuela’s economic crisis, the situation does show how far afield the crisis is spiraling. And, along with the scramble for certain basic necessities (notably, toilet paper after a major shortage last year), it is clear that the brunt of this crisis is hitting more than just the economically disadvantaged. Bad news for Maduro’s latest political pivot which itself, at its root, is another byproduct of Venezuela’s dire economic straits.
