Venezuela’s late socialist leader Hugo Chavez set money controls a decade ago that have caused a wacky system of disparity between official and black market rates for local currency. One result has been flights out of Venezuela booked for months in advance as locals take advantage of a loophole to gain financially.
In Venezuela, the disparity between the official and black-market rates for the local bolivar currency is insane. It sells on the illegal market at about seven times the government price of 6.3 to the dollar. To compound the problem, there are strict limits on the availability of dollars at the 6.3 rate.
But a special currency provision for travelers with a valid airline ticket allows Venezuelans to exchange up to $3,000 at the government rate. The result has sold out planes flying half full, tickets bought by Venezuelans who had no intention of traveling. Others are exchanging currency, easily paying for their travel via the financial gain afforded by the special travel provision.“It is possible to travel abroad for free due to this exchange rate magic,” said local economist Angel Garcia Banchs in a Reuters report.
Better yet, those actually flying take credit cards abroad to get a cash advance, bringing back dollars to sell on the black market for about seven times the original exchange rate.