The Venezuelan capital Caracas can be one of the most expensive cities in the world — or one the cheapest. It all depends on how you exchange your dollars.
At a fast food restaurant in the city I recently ordered a pretty tasty plate of chicken and rice and it cost me 160 bolivars. At the official exchange rate set by the government, that works out to more than 25 dollars. But at the black market rate, it's just two bucks.
So needless to say, most anyone who can change money on the black market in Venezuela does so.
As one person told me: "For people like me who are paid in dollars, it's easier and better to change your dollars at the black market where the price is higher and its much easier than the official rate."
He didn't want his name used because changing money on the black market is a crime that can come with a 6-year jail sentence.
In most countries, you change your dollars for the local currency at a price the market deems fair. In Venezuela, the government fixed the price at 6.3 bolivars to the dollar.
But the black market says that price is ridiculously low. Recently, one U.S. dollar in Venezuela could get you up to 90 bolivars. The rate has come down since then.
Reuters reported that the black market rate was about 58 bolivars to the dollar on Monday, the same day that the government introduced the new exchange system.
Related NPR Stories
The Two-Way
5 Things To Know About Venezuela's Protest Leader