Greetings, @ayijutridar. Great article. As you rightly conclude, this reconversión is not going to stop, let alone reduce, inflation; on the contrary (as we can already see it after just a week) it has accelerated it.
Sugar was costing 600VEF (cash), now it cost 20 VES, that is 2 million VEF, in just a week!
Additionally, i wanted to point out that the reason the Petro is not going to work is not only because
So far the impact has not been seen because the value of petro does not attract the attention of the global community of cryptocurrency users.
but also because it was born illegally. The political mess supersedes any economic measure. The legitimately elected national congress was put aside and substituted by an illegally elected Constituyente, which was supposed to re-write the constitution. After a year, they have not shown one single article they have reformed. They are there only to guarantee that Maduro can do whatever he wants; they are above the law.
What investor in his right mind would take such risks?
Thanks so much @hlezama. You add new information to us in Indonesia, especially for myself who just found out that publishing petro is an illegal decision because it is not supported by the Congress. According your comments, I think Venezuela must solve political problems first rather than economic problems. The situation in Venezuela at the moment, I think, is not much different from Indonesia in 1998. However, with the replacement of President Soeharto in power for 32 years, the Indonesian economy finally recovered and now its growth is above 5 percent. So, political change has an impact on economic change. Can Venezuela impeact Maduro?
I agree. He was already impeached. Actually, he was judged and sentenced to 18 years of prison.
In Spanish:
https://www.analitica.com/actualidad/actualidad-nacional/tsj-exilio-condena-18-anos-carcel-maduro/
in English:
http://www.digitaljournal.com/news/world/exiled-venezuelan-supreme-court-sentences-maduro-over-corruption/article/529657
Yet, that Supreme court is in exile. After they were appointed by the legitimate Congress they were persecuted and had to leave the country. No other power in the country will enforce that sentence. What is happening in Venezuela, were ti no so tragic, could be the source of a political comedy. I challenge anyone to find in the history of the world something more absurd and pathetic than this.