WHAT HAPPENED: Last year, Xyza wrote about Venezuela’s economic crisis. Global oil prices had decreased which meant trouble for Venezuela, a country whose major export is oil. As a result, the government wasn’t able to purchase needed imports from other countries. People had to wait in long lines to get basic supplies like flour and sugar.
NOW WHAT: Over the last six years, Venezuela’s cash reserves have dropped from approximately $30 billion to $10 billion. Now $10 billion might sound like a lot of money, but when you owe over $7 billion to other countries and need to take care of a country of over 30 million people, that’s actually not very much at all. Why are they losing money? Poorly managed government projects, corruption, and a decrease in oil prices have all played a role. For these reasons, the people of Venezuela are continuing to have a hard time accessing food and other basic necessities.