devaluation

The country is running low on the greenbacks used for a big portion of purchases, and which many Venezuelans try to save as insurance against bolivar devaluation.

Practically since it gained independence in 1816, it has been caught in an endless loop of boom, bust, devaluation, default, and inflation.

But Guidotti said while the benefits of a currency devaluation are temporary, “taxes that start out as temporary become permanent.”

Adding to the risk is Argentina's long history of currency devaluation and debt default, including most recently in 2020.

But that doesn’t dent his long-term view of a further dollar devaluation that leads to inflation.