The exchange rate differential on the border Norte de Santander, Colombia and Venezuela. The economics or politics?

Abstract

The exchange rate differential on the border North of Santander Colombia and Venezuela is analyzed from the point of view of both Nations argued in a theoretical reflection. So-called ‘border more lively Latin America’ presents high-intensity of cross-border trade with a high historical roots making interdependent both regions. Their study is important, the vision of the Venezuelan economy has produced maladjustments which have moved to a region where there is a market economy that has affected by the differential Exchange to smuggling and other new modalities such as ‘bachaqueo’, where trade with two or three products and the porters carrying across the river. There consensus about the causes of exchange rate differential, for a few is there is no consequence of the market and of the imbalances caused by the policies of the Venezuelan Government, for others is the result of speculation and the mafia of the border. Before this reality with antagonistic visions, agrees the proposition of the additional asymmetry of adjoining States, is considered that it deprives the Venezuelan political nuance on the economy and there is a chaos organized in the management of the differential exchange benefiting stakeholders but be expressed otherwise.