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Unified FX rate not guaranteed to end Venezuelan dollar drought

The Venezuelan economy remains in the grip of a dollar drought, and it seems that the government maysoon abandon its disastrous experiment with a multi-tiered exchange rate. But even if a new unifiedbolivar exchange rate is introduced and devalued to over 40/$ (from approximately 30/$ currently), itwill not be enough to put the economy back onto a sustainable path without radical supply-side reforms.

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