Take physic, pomp

Venezuela’s parallel rate and drug money laundering

Check out the Devil’s Excrement on this esp the comments section on his latest post, as MO scooped the world last night by hearing of frozen parallel dollar accounts. What happened after that was a guy living in Florida, one Rama K. Vyalasu, was indicted on charges of money laundering that have clear connections to the Venezuelan parallel market as well as wire transfers inside the USA (read the indictment here).

One of the consequences of all this action is that the normal parallel market has been virtually closed down all day, with the ask shooting to VEF7 on the uncertainty (bid staying around 6…big big spread). It remains to be seen whether Venezuela gets a normal parallel market tomorrow or whether there will be further moves by US authorities against the presumed drug money laundering ring.

By the way, great scoop, MO. I read you last night after finishing some writing here and thought it interesting, then promptly forgot about it today. Good stuff, kudos to you, and blogs showing the way yet again.

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