Venezuela Hookers Now Make More As FX Traders

"The dollar is king these days, but having them comes at a price," notes one working girl as Venezuelan prostitutes can more than double their earnings by moonlighting as currency traders, "yes, we got dollars to afford the things our families need, but we have to sell our bodies for it." The dollar shortage is turning Venezuela into a two-tier society similar to the Soviet Union and Cuba, said Steve Hanke; as Bloomberg notes, those with access to dollars such as prostitutes, tour agents, airport taxi drivers and expatriates are able to shield themselves from inflation by trading their greenbacks at ever higher rates. Those who can’t are seeing their living standards decline. Socialism at work...

 


 

As Bloomberg reports,

The bolivar has fallen to 71 to the dollar from 23 on the black market since President Nicolas Maduro succeeded his mentor Hugo Chavez in April 2013. The government tightened currency handouts to stem the outflow of foreign reserves, which are near a decade low. The official exchange rate, reserved for imports of food and medicine, is 6.3 bolivars per dollar.

 

The dollar shortage is turning Venezuela into a two-tier society similar to the Soviet Union and Cuba, said Steve Hanke, professor of applied economics at Johns Hopkins University in Baltimore. Those with access to dollars such as prostitutes, tour agents, airport taxi drivers and expatriates are able to shield themselves from inflation by trading their greenbacks at ever higher rates. Those who can’t are seeing their living standards decline.

 

In a country where prostitution is legal, it is the black market in dollars that Maduro has called “perverse,” saying it was designed by the bourgeoisie to destroy his Socialist government.

And so, as one prostitute explains, "greenbacks are king"...

The arrival of a Liberian-flagged freighter with Ukrainian, Arab and Filipino sailors spells one thing for Elena -- dollars.

 

Within hours of hearing of the ship’s imminent arrival, she has packed her bags and is heading to the crumbling city of Puerto Cabello. It is a 450-kilometer (280-mile) journey from her home in the Western state of Zulia that Elena finds herself doing more often now as Venezuela’s economy contracts, the bolivar slumps and prices soar.

 

Prostitutes more than double their earnings by moonlighting as currency traders in Puerto Cabello. They are the foreign exchange counter for sailors in a country where buying and selling dollars in the streets is a crime -- and prostitution isn’t. Greenbacks in the black market are worth 11 times more than the official rate as dollars become more scarce in an economy that imports 70 percent of the goods it consumes.

 

“The dollar is king these days, but having them comes at a price,” Elena, who uses an alias to protect her identity, said late last month in a room she rents in a Puerto Cabello brothel. “Yes, we got dollars to afford the things our families need, but we have to sell our bodies for it.”

 

The benefits of the trade are stacked around Elena’s room in the Blue House brothel -- bags of rice, flour, sugar and cooking oil -- products that other Venezuelans have to line up for hours to buy at regulated prices in shops, if they can find them at all.

FX traders have been jailed and businesses demanding too high a profit margin shut down but prostitution thrives...

Officials have tried jailing traders, shutting down brokerages and setting up four parallel exchange systems to stem the rise of the unofficial rate in the 11 years since Chavez began controlling the bolivar’s price.

 

Prostitution has become the only boom industry in Venezuela’s biggest port.

 

Officials have tried jailing traders, shutting down brokerages and setting up four parallel exchange systems to stem the rise of the unofficial rate in the 11 years since Chavez began controlling the bolivar’s price.

 

“We can make more in two hours here than working in a shop in a month,” said a prostitute who calls herself Giselle, as she sipped a 12-year-old whiskey in Club 440 striptease joint.

And it's unlikely to end soon...

The percentage of households living below the poverty line rose six percentage points to 27.3 percent in the second half of last year, the first increase since 2010

 

For women like Giselle, Elena and Paola, prostitution for dollars has become a lifeline keeping them from poverty.

 

“We haven’t studied, we have no education. What would we do now if we stopped?” said Giselle. “Work for a minimum wage that doesn’t even pay for food? If we wouldn’t be here working the scene, we would be living on the streets.”

Viva La Socialism...