Venezuela’s Guaido declares himself president, Maduro under pressure

Opposition supporters take part in a rally against Venezuelan President Nicolas Maduro's government and to commemorate the 61st anniversary of the end of the dictatorship of Marcos Perez Jimenez in Caracas, Venezuela January 23, 2019. REUTERS/Carlos Garcia Rawlins

By Corina Pons, Angus Berwick and Mayela Armas

CARACAS (Reuters) – Venezuelan opposition leader Juan Guaido declared himself interim president on Wednesday, while hundreds of thousands of Venezuelans poured onto the streets to demand an end to the socialist government of President Nicolas Maduro.

Opposition supporters take part in a rally against Venezuelan President Nicolas Maduro's government and to commemorate the 61st anniversary of the end of the dictatorship of Marcos Perez Jimenez in Caracas, Venezuela January 23, 2019. REUTERS/Carlos Garcia Rawlins

Opposition supporters take part in a rally against Venezuelan President Nicolas Maduro’s government and to commemorate the 61st anniversary of the end of the dictatorship of Marcos Perez Jimenez in Caracas, Venezuela January 23, 2019. REUTERS/Carlos Garcia Rawlins

In a statement minutes later, U.S. President Donald Trump recognized Guaido as Venezuela’s legitimate interim president.

Demonstrators clogged avenues in eastern Caracas, chanting “Get out, Maduro” and “Guaido, Presidente,” while waving national flags. Police fired tear gas to disperse protesters in several areas. A rally the night before left four people reported dead, an echo of tumultuous riots two years ago.

The opposition has been energized by young congress chief Guaido, who has led a campaign to declare Maduro a usurper and has promised a transition to a new government in a nation suffering a hyperinflationary economic collapse.

Guaido, in a speech before a cheering crowd, took an oath swearing himself in as interim president.

“I swear to assume all the powers of the presidency to secure an end of the usurpation,” he said.

He has said he would be willing to replace Maduro with the support of the military and to call free elections.

The Trump administration told U.S. energy companies it could impose sanctions on Venezuelan oil as soon as this week if the political situation worsens, according to sources.

Maduro was inaugurated on Jan. 10 to another term in office following a widely boycotted election last year that many foreign governments described as a fraudulent. His government accuses Guaido of staging a coup and has threatened him with jail.

ARMED FORCES

Any change in government in Venezuela will rest on a shift in allegiance within the armed forces. They have stood by Maduro through two waves of street protests and a steady dismantling of democratic institutions.

“We need freedom, we need this corrupt government to get out, we need to all unite, so that there is peace in Venezuela,” said Claudia Olaizola, a 54-year-old saleswoman near the march’s center in the eastern Chacao district, a traditional opposition bastion.

In a potent symbol of anger, demonstrators in the southern city of Puerto Ordaz on Tuesday toppled a statue of late socialist leader Hugo Chavez, broke it in half and dangled part of it from a bridge.

A 16-year-old was shot to death at a protest on Tuesday in western Caracas, according to rights group Venezuelan Observatory of Social Conflict. Three people were shot dead on Tuesday night in southern Bolivar City during a looting of a grocery store that followed a nearby protest, Bolivar state governor Justo Noguera said in a telephone interview.

Maduro has presided over Venezuela’s spiral into its worst-ever economic crisis. His re-election in 2018 was widely viewed as a sham due to widespread election irregularities.

“We’ve come out to support the opposition and preserve the future of my son and my family, because we’re going hungry,” said Jose Barrientos, 31, an auto parts salesman in the poor west end of Caracas.

(Reporting by Corina Pons, Angus Berwick, Mayela Armas, Vivian Sequera, Deisy Buitrago and Brian Ellsworth in Caracas; Additional reporting by Francisco Aguilar in Barinas and Maria Ramirez in Puerto Ordaz, and Matt Spetalnick in Washington; Editing by Rosalba O’Brien and Alistair Bell)

Venezuelan migrant exodus hits 3 million: U.N.

FILE PHOTO: Colombian migration officers check the identity documents of people trying to enter Colombia from Venezuela, at the Simon Bolivar International bridge in Villa del Rosario, Colombia August 25, 2018. REUTERS/Carlos Garcia Rawlins/File Photo

GENEVA (Reuters) – Three million Venezuelans have fled economic and political crisis in their homeland, most since 2015, the United Nations said on Thursday.

The exodus, driven by violence, hyperinflation and shortages of food and medicines, amounts to around one in 12 of the population.

It has accelerated in the past six months, said William Spindler of the U.N. High Commissioner for Refugees (UNHCR), which appealed for greater international efforts to ease the strain on the country’s neighbors.

U.N. data in September showed 2.6 million had fled.

“The main increases continue to be reported in Colombia and Peru,” Spindler said.

Colombia is sheltering 1 million Venezuelans. Some 3,000 more arrive each day, and the Bogota government says 4 million could be living there by 2021, costing it nearly $9 billion.

Oil-rich Venezuela has sunk into crisis under Socialist President Nicolas Maduro, who has damaged the economy through state interventions while clamping down on political opponents.

He has dismissed the migration figures as “fake news” meant to justify foreign intervention in Venezuela’s affairs.

The International Organization for Migration (IOM) and UNHCR said the exodus was straining several neighboring countries, notably Colombia.

“Countries in Latin America and the Caribbean have largely maintained a commendable open-door policy,” said Eduardo Stein, UNHCR-IOM Joint Special Representative for Refugees and Migrants from Venezuela.

“…However, their reception capacity is severely strained, requiring a more robust and immediate response from the international community.”

Regional government officials are to meet in Quito, Ecuador from Nov 22-23 to coordinate humanitarian efforts.

(Reporting by Stephanie Nebehay; editing by John Stonestreet)

Fleeing hardship at home, Venezuelan migrants struggle abroad, too

FILE PHOTO: Colombian migration officers check the identity documents of people trying to enter Colombia from Venezuela, at the Simon Bolivar International bridge in Villa del Rosario, Colombia August 25, 2018. REUTERS/Carlos Garcia Rawlins

By Alexandra Ulmer

VILLA DEL ROSARIO, Colombia (Reuters) – Every few minutes, the reeds along the Tachira River rustle. Smugglers, in ever growing numbers, emerge with a ragtag group of Venezuelan migrants – men struggling under tattered suitcases, women hugging bundles in blankets and schoolchildren carrying backpacks. They step across rocks, wade into the muddy stream and cross illegally into Colombia.

This is the new migration from Venezuela.

Venezuelans carry their belongings along a pathway after illegally entering Colombia through the Tachira river close to the Simon Bolivar International bridge in Villa del Rosario, Colombia August 25, 2018. REUTERS/Carlos Garcia Rawlins

Venezuelans carry their belongings along a pathway after illegally entering Colombia through the Tachira river close to the Simon Bolivar International bridge in Villa del Rosario, Colombia August 25, 2018. REUTERS/Carlos Garcia Rawlins

For years, as conditions worsened in the Andean nation’s ongoing economic meltdown, hundreds of thousands of Venezuelans – those who could afford to – fled by airplane and bus to other countries far and near, remaking their lives as legal immigrants.

Now, hyperinflation, daily power cuts and worsening food shortages are prompting those with far fewer resources to flee, braving harsh geography, criminal handlers and increasingly restrictive immigration laws to try their luck just about anywhere.

In recent weeks, Reuters spoke with dozens of Venezuelan migrants traversing their country’s Western border to seek a better life in Colombia and beyond. Few had more than the equivalent of a handful of dollars with them.

“It was terrible, but I needed to cross,” said Dario Leal, 30, recounting his journey from the coastal state of Sucre, where he worked in a bakery that paid about $2 per month.

At the border, he paid smugglers nearly three times that to get across and then prepared, with about $3 left, to walk the 500 km (311 miles) to Bogota, Colombia’s capital. The smugglers, in turn, paid a fee to Colombian crime gangs who allow them to operate, according to police, locals and smugglers themselves.

As many as 1.9 million Venezuelans have emigrated since 2015, according to the United Nations. Combined with those who preceded them, a total of 2.6 million are believed to have left the oil-rich country. Ninety percent of recent departures, the U.N. says, remain in South America.

The exodus, one of the biggest mass migrations ever on the continent, is weighing on neighbors. Colombia, Ecuador and Peru, which once welcomed Venezuelan migrants, recently tightened entry requirements. Police now conduct raids to detain the undocumented.

FILE PHOTO: Undocumented Venezuelans migrants stand in line to wait for food to be handed out by a group of Colombians, who fund an informal soup kitchen, outside a makeshift shelter in Pamplona, Colombia August 26, 2018. REUTERS/Carlos Garcia Rawlins

FILE PHOTO: Undocumented Venezuelans migrants stand in line to wait for food to be handed out by a group of Colombians, who fund an informal soup kitchen, outside a makeshift shelter in Pamplona, Colombia August 26, 2018. REUTERS/Carlos Garcia Rawlins

In early October, Carlos Holmes Trujillo, Colombia’s foreign minister, said as many as four million Venezuelans could be in the country by 2021, costing national coffers as much as $9 billion. “The magnitude of this challenge,” he said, “our country has never seen.”

In Brazil, which also borders Venezuela, the government deployed troops and financing to manage the crush and treat sick, hungry and pregnant migrants. In Ecuador and Peru, workers say that Venezuelan labor lowers wages and that criminals are hiding among honest migrants.

“There are too many of them,” said Antonio Mamani, a clothing vendor in Peru, who recently watched police fill a bus with undocumented Venezuelans near Lima.

“WE NEED TO GO”

By migrating illegally, migrants expose themselves to criminal networks who control prostitution, drug trafficking and other rackets. In August, Colombian investigators discovered 23 undocumented Venezuelans forced into prostitution and living in basements in the colonial city of Cartagena.

While most migrants are avoiding such straits, no shortage of other hardship awaits – from homelessness, to unemployment, to the cold reception many get as they sleep in public squares, peddle sweets and throng already overburdened hospitals.

Still, most press on, many on foot.

Some join compatriots in Brazil and Colombia. Others, having spent what money they had, are walking vast regions, like Colombia’s cold Andean passes and sweltering tropical lowlands, in treks toward distant capitals, like Quito or Lima.

Johana Narvaez, a 36-year-old mother of four, told Reuters her family left after business stalled at their small car repair shop in the rural state of Trujillo. Extra income she made selling food on the street withered because cash is scarce in a country where annual inflation, according to the opposition-led Congress, recently reached nearly 500,000 percent.

“We can’t stay here,” she told her husband, Jairo Sulbaran, in August, after they ran out of food and survived on corn patties provided by friends. “Even on foot, we must go.” Sulbaran begged and sold old tires until they could afford bus tickets to the border.

Venezuelan President Nicolas Maduro has chided migrants, warning of the hazards of migration and that emigres will end up “cleaning toilets.” He has even offered free flights back to some in a program called “Return to the Homeland,” which state television covers daily.

Most migration, however, remains in the other direction.

Until recently, Venezuelans could enter many South American countries with just their national identity cards. But some are toughening rules, requiring a passport or additional documentation.

Even a passport is elusive in Venezuela.

Paper shortages and a dysfunctional bureaucracy make the document nearly impossible to obtain, many migrants argue. Several told Reuters they waited two years in vain after applying, while a half-dozen others said they were asked for as much as $2000 in bribes by corrupt clerks to secure one.

Maduro’s government in July said it would restructure Venezuela’s passport agency to root out “bureaucracy and corruption.” The Information Ministry didn’t respond to a request for comment.

“VENEZUELA WILL END UP EMPTY”

Many of those crossing into Colombia pay “arrastradores,” or “draggers,” to smuggle them along hundreds of trails. Five of the smugglers, all young men, told Reuters business is booming.

“Venezuela will end up empty,” said Maikel, a 17-year-old Venezuelan smuggler, scratches across his face from traversing the bushy trails. Maikel, who declined to give his surname, said he lost count of how many migrants he has helped cross.

Colombia, too, struggles to count illegal entries. Before the government tightened restrictions earlier this year, Colombia issued “border cards” that let holders crisscross at will. Now, Colombia says it detects about 3,000 false border cards at entry points daily.

Despite tougher patrols along the porous, 2,200-km border, officials say it is impossible to secure outright. “It’s like trying to empty the ocean with a bucket,” said Mauricio Franco, a municipal official in charge of security in Cucuta, a nearby city.

And it’s not just a matter of rounding up undocumented travelers.

Powerful criminal groups, long in control of contraband commerce across the border, are now getting their cut of human traffic. Javier Barrera, a colonel in charge of police in Cucuta, said the Gulf Clan and Los Rastrojos, notorious syndicates that operate nationwide, are both involved.

During a recent Reuters visit to several illegal crossings, Venezuelans carried cardboard, limes and car batteries as barter instead of using the bolivar, their near-worthless currency.

Migrants pay as much as about $16 for the passage. Maikel, the arrastrador, said smugglers then pay gang operatives about $3 per migrant.

For his crossing, Leal, the baker, carried a torn backpack and small duffel bag. His 2015 Venezuelan ID shows a healthier and happier man – before Leal began skimping on breakfast and dinner because he couldn’t afford them.

He rested under a tree, but fretted about Colombian police. “I’m scared because the “migra” comes around,” he said, using the same term Mexican and Central American migrants use for border police in the United States.

It doesn’t get easier as migrants move on.

Even if relatives wired money, transfer agencies require a legally stamped passport to collect it. Bus companies are rejecting undocumented passengers to avoid fines for carrying them. A few companies risk it, but charge a premium of as much as 20 percent, according to several bus clerks near the border.

The Sulbaran family walked and hitched some 1200 km to the Andean town of Santiago, where they have relatives. The father toured garages, but found no work.

“People said no, others were scared,” said Narvaez, the mother. “Some Venezuelans come to Colombia to do bad things. They think we’re all like that.”

(Additional reporting by Mitra Taj in Lima, Anggy Polanco in Cucuta, Helen Murphy in Bogota and Alexandra Valencia in Quito. Editing by Paulo Prada.)

Venezuelan streets quieter than usual after opposition strike call

People queue to withdraw cash from automated teller machines (ATM) at a Mercantil bank branch in Caracas, Venezuela August 21, 2018. REUTERS/Carlos Garcia Rawlins

CARACAS (Reuters) – Venezuela’s streets were quieter than normal on Tuesday but many businesses remained open despite an opposition call for a national strike to protest economic measures announced by socialist President Nicolas Maduro.

The OPEC nation on Monday cut five zeros from prices in response to hyperinflation as part of a broad set of measures meant to address an economic crisis, including pegging the country’s currency to an obscure state-backed cryptocurrency.

Opposition critics slammed the plan as inadequate in the face of inflation that topped 82,000 percent in July and called for a one-day halt of commercial activities.

“Don’t got to work, you have the right to protest, because what’s at stake is your life, your future, and your country. Rebel!” opposition party Popular Will wrote via its Twitter account.

Maduro declared Monday a national holiday for banks and consumers to get accustomed to the new pricing scheme, under which items that cost 1,000,000 bolivars last week were remarked with price tags of 10 bolivars.

Fedecamaras, the country’s main business group, slammed the proposal as “incoherent,” noting that the plan’s 3,000 percent minimum wage increase would make it impossible for businesses to keep their doors open.

But the group did not take a position on the opposition-led strike, saying individual members should choose on their own.

Venezuelan 100 bolivar notes thrown by people in a trash bin are seen at a gas station of the Venezuelan state-owned oil company PDVSA in Caracas, Venezuela August 20, 2018. REUTERS/Marco Bello

Venezuelan 100 bolivar notes thrown by people in a trash bin are seen at a gas station of the Venezuelan state-owned oil company PDVSA in Caracas, Venezuela August 20, 2018. REUTERS/Marco Bello

The Information Ministry did not immediately reply to a request for comment.

The ruling Socialist Party announced a march on Tuesday morning to support Maduro’s economic measures that was scheduled to end with a rally at the presidential palace.

The collapse of the country’s once-booming economy has fueled hunger and disease, spurring an exodus of migrants to nearby countries.

In recent days, Ecuador and Peru tightened visa requirements for Venezuelans and violence drove hundreds of Venezuelan migrants back across the border with Brazil.

The discontent has also spread to the military, as soldiers struggle to get enough food and many desert by leaving the country.

Two high-ranking military officers were arrested this month for alleged involvement in drone explosions during a speech by Maduro, who called it an assassination attempt.

Maduro says his government is the victim of an “economic war” led by the opposition with the help of Washington, which last year levied several rounds of sanctions against his government and high-ranking officials.

(Reporting by Brian Ellsworth; Editing by Paul Simao)

With inflation soaring, Venezuela prices shed five zeros

A 2.4 kg chicken is pictured next to 14,600,000 bolivars, its price and the equivalent of 2.22 USD, at a mini-market in Caracas, Venezuela. It was the going price at an informal market in the low-income neighborhood of Catia. REUTERS/Carlos Garcia Rawlins

By Tibisay Romero

VALENCIA, Venezuela (Reuters) – Venezuela on Monday slashed five zeros from prices as part of a broad economic plan that President Nicolas Maduro says will tame hyperinflation but critics call another raft of failed socialist policies that will push the chaotic country deeper into crisis.

Streets were quiet and shops were closed due to a national holiday that Maduro decreed for the first day of the new pricing plan for the stricken economy, which the International Monetary Fund has estimated will have 1 million percent inflation by year-end.

The price change comes with a 3,000 percent minimum wage hike and tax increases meant to shore up government revenue and a plan to peg salaries, prices and the country’s exchange rate tied to the petro, an elusive state-backed cryptocurrency.

Economists say the plan announced on Friday is likely to escalate the crisis facing the once-prosperous country that is now suffering from Soviet-style product shortages and a mass exodus of citizens fleeing for nearby South American countries.

Venezuelans are mostly baffled by the monetary overhaul and skeptical it will turn the country around.

“This is out of control, prices are sky high,” said Betzabeth Linares, 47, in a supermarket in the central city of Valencia. “What worries me is how we’ll eat, the truth is that the way things are going, I really don’t know.”

After a decade-long oil bonanza that spawned a consumption boom in the OPEC member, many poor citizens are now reduced to scouring through garbage to find food as monthly salaries currently amount to a few U.S. dollars a month.

The new measures spooked shopkeepers already struggling to stay afloat due to hyperinflation, government-set prices for goods ranging from flour to diapers, and strict currency controls that crimp imports.

Growing discontent with Maduro has also spread to the military as soldiers struggle to get enough food and many desert by leaving the country, along with hundreds and thousands of civilians who have emigrated by bus across South America.

Two high-ranking military officers were arrested this month for their alleged involvement in drone explosions during a speech by Maduro, who has described it as an assassination attempt.

The chaos has become an increasing concern for the region. In recent days, Ecuador and Peru have tightened visa requirements for Venezuelans, and violence drove hundreds of Venezuelan migrants back across the border with Brazil on Saturday.

Maduro, re-elected to a second term in May in a vote widely condemned as rigged, says his government is the victim of an “economic war” led by political adversaries with the help of Washington and accuses the United States of seeking to overthrow him.

The United States has denied the accusations. But it has described the former bus driver and union leader as a dictator and levied several rounds of financial sanctions against his government and top officials.

(Writing by Brian Ellsworth; Editing by Alexandra Ulmer and Susan Thomas)

Venezuelans rush to shop, fill tanks before monetary overhaul

People line up to withdraw cash from an automated teller machine (ATM) outside a Banco Mercantil branch in Caracas, Venezuela August 17, 2018. REUTERS/Marco Bello

By Shaylim Castro and Isaac Urrutia

CARACAS/MARACAIBO (Reuters) – Jittery Venezuelans on Friday rushed to shops and lined up at gas stations on concerns that a monetary overhaul to lop off five zeros from prices in response to hyperinflation could wreak financial havoc and make basic commerce impossible.

Shoppers sought to ensure their homes were fully stocked with essentials such as food and dry goods and their tanks full before the measure decreed by President Nicolas Maduro takes effect on Monday.

Inflation hit 82,700 percent in July, according to the opposition-run congress, as the country’s socialist economic model continued to unravel, meaning purchases of basic items such as a bar of soap or a kilo of tomatoes require piles of cash that is often difficult to obtain.

“I came to buy vegetables, but I’m leaving because I’m not going to wait in this line,” said Alicia Ramirez, 38, a business administrator, leaving a supermarket in the western city of Maracaibo. “People are going crazy.”

The change appears unlikely to generate the chaos of December 2016 when Maduro removed the largest note in circulation without providing a replacement for it. That led to protests, lootings and hundreds of arrests as the country was effectively left without legal tender.

Drivers also rushed to fill up on Venezuela’s heavily-subsidized gas, the world’s cheapest at around 2,896 gallons per U.S. penny. Some drivers were worried about paying for gas come Monday as there will be no new legal tender small enough to pay for a full tank.

Maduro also said this month that gas price should be increased, but has not provided a timeframe for the price hike. A half-dozen sources at service stations said they had not been briefed about any changes and were not expecting an imminent rise in prices.

A gas station worker pumps gas into a car at a gas station of the Venezuelan state-owned oil company PDVSA in Caracas, Venezuela August 17, 2018. REUTERS/Marco Bello

A gas station worker pumps gas into a car at a gas station of the Venezuelan state-owned oil company PDVSA in Caracas, Venezuela August 17, 2018. REUTERS/Marco Bello

“It’s better to be safe than to try to go out during the weekend and not to find open gas stations… I think people are more sad than angry about this,” said teacher Ana Perez, 50, as she lined up in a station in the once industry-filled city of Valencia.

Maduro, who has said the country is victim of an “economic war” led by political adversaries, said the new monetary measure would bring economic stability to the struggling OPEC nation.

But his critics have said the move is little more than an accounting maneuver that would do nothing to slow soaring prices. They blame inflation on failed socialist policies and indiscriminate money printing.

Because many transactions now happen via debit cards over point-of-sale terminals, many worry that the change – which banking industry leaders have said was carried out too quickly – could collapse financial networks.

Maduro has declared a public holiday for Monday when a new set of bills will be introduced with the lower denominations. Internet banking operations will be halted for several hours starting on Sunday evening.

But the primary difference between the upcoming change and Maduro’s 2016 currency decision is that in this instance, most of the current ones will coexist with the new notes for an undetermined period while the new bills come into circulation.

That will in some circumstances leave consumers in the confusing situation of having to use old bills with face value of 1,000,000 bolivars to make purchases valued at 10 bolivars in the new denomination.

Poor Venezuelans without bank accounts have for months been carrying wads of cash to make basic purchases.

Buying one kilo of cheese, worth the equivalent of $1.14 at the most widely used exchange rate, requires 7,500 notes of 1,000 bolivar denomination – a note that was only brought fully into circulation in 2017.

One bar of soap, which sells for the equivalent of $0.53, requires 3,500 of the same notes.

“This is going to be complete disaster, we don’t have information,” said Yoleima Manrique, 42, assistant manager of a home appliance store in Caracas. “It’s going to be crazy for the clients and for us.”

(Additional reporting by Marianna Parraga in Mexico City, Mayela Armas, Deisy Buitrago and Corina Pons in Caracas, Anggy Polanco in San Cristobal, Maria Ramirez in Puerto Ordaz, and Tibisay Romero in Valencia; Writing by Brian Ellsworth; Editing by Alexandra Ulmer and Diane Craft)

Fish for flour? Barter is the new currency in collapsing Venezuela

A child receives packages of corn flour in exchange for fish in Rio Chico, Venezuela June 14, 2018. REUTERS/Marco Bello

By Andreina Aponte

RIO CHICO, Venezuela (Reuters) – Under the midday sun, dozens of fishermen wait to sell their day’s catch by a lagoon in the town of Rio Chico on the Caribbean coast of Venezuela. But they aren’t expecting cash in return.

Instead, they’re swapping mullets and snappers for packages of flour, rice and cooking oil.

“There is no cash here, only barter,” said Mileidy Lovera, 30, walking along the shore with a cooler of fish that her husband had caught. She hoped to exchange it for food to feed her four children, or medicine to treat her son’s epilepsy.

A man weighs fish that he intends to barter for basic staples in Rio Chico, Venezuela June 14, 2018. REUTERS/Marco Bello

A man weighs fish that he intends to barter for basic staples in Rio Chico, Venezuela June 14, 2018. REUTERS/Marco Bello

In the hyperinflationary South American country, where bank notes are as difficult to find as chronically scarce food and medicine, Venezuelans are increasingly relying on to barter for basic transactions.

Payment for even the cheapest of goods and services would require unwieldy piles of banknotes, and there simply are not enough of those in circulation.

While formal businesses in cities can get by on bank transfers and debit cards, such operations are largely out of the question in rural areas such as Rio Chico, population 20,000.

Even in the capital Caracas, some 130 km (81 miles) to the west, many informal merchants lack access to bank services or point of sale terminals and prefer to be paid in kind.

The rise of barter exchange, amid hyperinflation and a dearth of cash, is a reflection of how the once-prosperous country is reverting to the most rudimentary of mechanisms of commercial exchange.

“It’s a very primitive payment system but it’s also very primitive for a country not to have enough cash available,” said economist Luis Vicente Leon of consultancy Datanalisis.

Packages of corn flour used as payment for haircuts are seen in a barber shop in Caracas, Venezuela June 29, 2018. REUTERS/Marco Bello

Packages of corn flour used as payment for haircuts are seen in a barber shop in Caracas, Venezuela June 29, 2018. REUTERS/Marco Bello

SKY-HIGH INFLATION

Economists say the central bank has not printed bills fast enough to keep up with inflation, which according to the opposition-run congress, reached an annual rate of almost 25,000 percent in May.

Once one of Latin America’s wealthiest countries, Venezuela’s economic collapse under President Nicolas Maduro’s government drove nearly one million people – 3 percent of the population – to emigrate between 2015 and 2017.

Maduro, reelected to a fresh six-year term in May in elections condemned by the United States, blames spiraling consumer prices and constant shortages of food and medicine on an “economic war” led by the opposition and Washington.

Julio Blanco, a 34-year-old motorcycle driver in Caracas, said he now allows trusted clients to make payments by bank transfer because there is simply not enough cash available.

“I prefer food as payment,” said Blanco, while waiting for customers at the poor west end of Caracas. “I do services for food in order to survive.”

In the hillside Caracas slum of La Vega, home to 124,000 people, Alfredo Silva offers a haircut for 1 million bolivars, about 30 cents at the black market exchange rate.

He accepts transfers or food but sometimes takes clients to a nearby butcher shop and asks them to buy him something worth the same as the haircut.

In Rio Chico, Marvin Guaramato arrives at the lagoon driving a car loaded with boxes of oil, pasta and corn flour, which is used to make a Venezuelan grilled pancake known as arepas.

A man stands next to coolers and basic staples in Rio Chico, Venezuela June 14, 2018. Picture taken June 14, 2018. REUTERS/Marco Bello - RC12B67E0930

A man stands next to coolers and basic staples in Rio Chico, Venezuela June 14, 2018. Picture taken June 14, 2018. REUTERS/Marco Bello – RC12B67E0930

The fishermen scramble to swap their catch in a brief and confused frenzy. One of them, Reinaldo Armas, was satisfied to have picked up products for family members in his village.

Still, sometimes he doesn’t manage to exchange his catch for anything, he says.

“Some days, I spend five hours without swapping anything and I have to take all that fish home,” he said.

(Writing by Brian Ellsworth and Angus Berwick; Editing by Daniel Flynn and Bernadette Baum)

Venezuelans buy bus tickets out after Maduro wins re-election

People wait in line to buy bus tickets at a bus station in Caracas, Venezuela May 21, 2018. REUTERS/Marco Bello

By Luc Cohen

CARACAS (Reuters) – Betsabeth Casique saved for eight months for bus tickets out of Venezuela for herself and her three children. At 1.4 million bolivars each, they are worth what she earns in a month working as a nurse.

It is less than two dollars at the black market exchange rate.

When socialist President Nicolas Maduro won re-election to a six-year term on Sunday in a vote the opposition and foreign governments called illegitimate, Casique decided to leave, first for the western city of San Cristobal and from there to Cucuta, Colombia.

Bags and suitcases are seen at a bus station in Caracas, Venezuela May 21, 2018. REUTERS/Marco Bello

Bags and suitcases are seen at a bus station in Caracas, Venezuela May 21, 2018. REUTERS/Marco Bello

“That was the straw that broke the camel’s back, what pushed me to do it faster,” Casique, 29, said while charging her cell phone outside the Aeroexpresos Ejecutivos terminal in Caracas, where she was planning to buy tickets for a bus leaving on Tuesday.

Ninety-nine people bought tickets on Monday morning for that trip, said Greberli Rojas, a passenger who displayed a handwritten wait-list she was keeping to avoid disputes between passengers trying to fit on the bus.

Rojas, a 29-year-old accountant who arrived from the town of Barlovento in Miranda state and bought her ticket early Monday, planned to spend the night at the station to avoid losing her spot.

“I’m prepared to sell coffee because us migrants have to be prepared to start from the bottom,” said Rojas, who plans to settle in Lima, Peru.

It appeared the emigration crisis Venezuela had experienced in recent years as its economy collapsed would continue since Maduro’s government was unlikely to change policies that led to hyperinflation, food and medicine shortages and rising crime.

The United Nations has estimated that nearly 1 million Venezuelans the country left between 2015 and 2017.

Over the past weekend, migrants streamed across the border, skeptical that their votes would change anything in an election many thought would be rigged. Mainstream opposition called for a boycott and turnout was 46 percent compared with 80 percent in 2013’s presidential election.

“We expected that the incumbents would win, so we decided to leave,” said Jorge Hernandez, a 23-year-old engineering student who sold his Toyota Avalon to buy tickets for himself and his mother to leave Caracas from the Rutas de America terminal on Monday morning.

He brought bread and crackers for the 36-hour trip to Trujillo, Peru, where his sister has been waiting tables for two-and-a-half months.

“This government has been in power for 18 years and things have gone from bad to worse,” he said.

(Reporting by Luc Cohen; Editing by Toni Reinhold)

A Venezuelan paradox: Maduro’s critics long for change but won’t vote

A motorcycle passes graffiti painted on a fence in Caracas, Venezuela May 12, 2018. Graffiti reads: "Do not vote, please I beg you". Picture taken on May 12, 2018. REUTERS/Carlos Jasso

By Brian Ellsworth

CARACAS (Reuters) – Months before Venezuela’s opposition coalition called for abstention in Sunday’s presidential election, college student Ana Romano had already decided not to vote.

While volunteering as a witness in October’s election for state governors, Romano said, she lost count of the number of times activists for the ruling Socialist Party walked into voting booths on the pretext of “assisting” voters – a tactic the opposition says is illegal intimidation.

Romano said pro-government workers at the voting center in the rural state of Portuguesa also refused to close its doors at 6:00 p.m. as per regulations, keeping it open for an extra hour while Socialist Party cadres rounded up votes.

Her experience illustrates why some in Venezuela’s opposition say they will boycott Sunday’s presidential vote despite anger at the South American nation’s unraveling under unpopular President Nicolas Maduro.

“It was four of them against me and I was 20 years old: I couldn’t do anything,” Romano said, adding that she did not file an official report because the other poll center workers would not have signed it – and because there was no paper available to do so.

“I don’t want to have anything to do with this upcoming election,” Romano said. “We’ve already made that mistake.”

Reuters could not independently verify details of her account. Venezuela’s National Electoral Council – the government body in charge of organizing elections – did not respond to phone calls seeking comment.

Venezuela, a once-wealthy OPEC nation, is suffering hyperinflation and widespread food shortages as its economy collapses, leading hundreds of thousands to flee into neighboring countries.

Yet, despite popularity ratings languishing around 20 percent, Maduro is expected to secure a second, six-year term in his deeply divided country, in part due to low opposition turnout.

Some opposition members say participation would be pointless in the face of efforts to tilt the playing field in favor of Maduro, a former union leader who was elected in 2013 after the death of his mentor, late socialist leader Hugo Chavez.

They cite tactics ranging from the kind of small-scale election-center tricks described by Romano to the detention of the most prominent opposition leader Leopoldo Lopez, the coercion of government workers to vote for Maduro and the heavy use of state resources in his campaign.

Many in the opposition say there are inadequate guarantees of a free and fair vote: they point to a ban on Western election observers. The government says they would violate its national sovereignty.

The Venezuelan Electoral Observatory, an independent local election monitoring group, has also flagged problems that include an inadequate timeframe to update the electoral register and develop a network of poll center witnesses, and a reduction in real-time audits of results.

Washington, which has imposed sanctions on Maduro’s government, has said it will not recognize the results of Sunday’s vote.

Breaking the opposition boycott is former state governor Henri Falcon. Opposition leaders have attacked Falcon – a former Chavez ally or ‘Chavista’ – as a stooge who is only running to legitimize Maduro’s reelection.

Falcon, an ex-soldier and two-time governor of Lara state, counters that they are ceding power to Maduro without a fight and insists he would win if discontented Venezuelans turned out to vote.

“So now I’m a ‘Chavista’ just because I have common sense, because I take a clear position and because I act responsibly toward my country?” Falcon said when asked recently by reporters about the opposition’s criticism.

Falcon’s camp was not immediately available for comment for this story.

Maduro and allies deny the elections are unfair and insist the fractured opposition was beaten in October because its voters did not participate – an argument supported by statistics showing low turnout in its strongholds.

“We have an advantage, which is the strength of the people. That can’t be called an unfair advantage,” Maduro said last month.

Participation forecasts vary but, in general, pollsters believe turnout for Sunday’s vote will be far lower than the 80 percent in the last presidential elections in 2013, when Maduro narrowly defeated opposition candidate Henrique Capriles, who is banned from running this time.

One survey by respected pollster Datanalisis showed that the number of people who said they were “very likely” to vote – its most accurate indicator of how many people will participate – had fallen close to 30 percent in March.

In the Caracas slum of La Vega, Jose Vasquez, 49, described the election as too unfair to warrant participation.

“It’s like a game in which the referee is a family member of the other team’s captain,” said Vasquez, selling 40 gram (1 oz) bags of coffee and sugar on a small table in the street. “Why would I waste my time?

ELECTORAL OBSTACLE COURSE

During his 14 years as president, Chavez racked up repeated ballot-box victories thanks to his charisma and generous spending of Venezuela’s oil revenues – much of it on popular health and nutrition programs, as well as on his own electoral campaigns.

The opposition has cried fraud in the past without demonstrating evidence of it, including after a 2004 recall referendum that Chavez won.

But October’s vote included one incident that some opposition sympathizers see as a tipping point: election officials manually changed results at several voting centers in Bolivar state to tip the result in favor of the Socialist Party candidate, according to election center witnesses.

The witnesses produced official poll statements from their voting centers showing that the number of votes for the opposition candidate was higher than those reflected in the National Electoral Council figures for those same centers.

The elections council – stacked with Maduro’s supporters – has never clarified the issue and did not answer Reuters questions regarding the incident.

Maduro’s government has never commented.

More commonly, the opposition has complained of obstacles that reduce the likelihood of their supporters voting but are difficult to classify as fraud in a traditional sense – such as last-minute changes to the location of voting centers.

In the central state of Lara, Alfredo Alvarez learned just days before the October vote that the elections council had changed his voting center – along with that of an estimated 700,000 Venezuelans in 200 voting centers in predominantly opposition areas.

Alvarez, a 62-year-old journalist, had to drive around the city of Barquisimeto for several hours because he could not get a clear answer on where he was supposed to vote.

“I had to investigate: I had to go to five different voting centers. Who can vote under those conditions?” asked Alvarez, who said he ultimately cast his ballot in a polling center run by Socialist Party activists that had no opposition witnesses.

“I’ve been voting since 1973, but I’m not voting in this election. Not under these circumstances.”

Election officials said the changes were necessary primarily because of security concerns, given that some of the centers were near the site of violent opposition protests. Those protests had ended nearly three months before.

Electoral Council officials were not immediately available to explain that discrepancy.

(For a graphic on ‘Latin America’s upcoming elections’ click https://tmsnrt.rs/2rAQ4l1)

(Reporting by Brian Ellsworth, additional reporting by Miguel Angel Sulabaran, Maria de los Angeles Ramirez in Puerto Ordaz, and Vivian Sequera in Turmero; Editing by Alexandra Ulmer, Daniel Flynn and Rosalba O’Brien)

Venezuela’s Maduro threatens to gatecrash regional summit

Venezuela's President Nicolas Maduro gestures as he talks to the media during a news conference in Caracas, Venezuela February 15, 2018. REUTERS/Marco Bello

CARACAS (Reuters) – Venezuela’s unpopular socialist president Nicolas Maduro said on Thursday his right-wing Latin American counterparts showed intolerance by trying to exclude him from an upcoming summit in Lima and he vowed to go anyway.

Peru’s center-right government this week said Maduro would not be welcome at the Summit of the Americas in April, reinforcing his growing diplomatic isolation during a crackdown on dissent and a brutal economic crisis in Venezuela.

“Do you fear me? You don’t want to see me in Lima? You’re going to see me. Because come rain or shine, by air, land, or sea, I will attend the Summit of the Americas,” Maduro said during a press conference with foreign journalists.

Maduro also said Argentina’s center-right president Mauricio Macri should call a meeting of the Union of South American Nations (Unasur) group of Latin American nations with him.

“Call a meeting, dare, don’t be scared of me, President Macri,” said Maduro. “If you want to talk about Venezuela, let’s talk about Venezuela.”

Government critics say Maduro for years has refused to listen to advice that he should reform Venezuela’s crumbling economy that has spawned shortages, hyperinflation, malnutrition, and the return of once-controlled diseases. They also say he refuses to acknowledge the extent of Venezuela’s humanitarian suffering, so it is futile to meet with him.

He says right-wing regional governments are part of U.S.-led international conspiracy to topple him and take control of the OPEC member’s oil resources.

“They’re the most unpopular governments on the planet,” he said, naming Argentina, Colombia and Peru.

(Reporting by Alexandra Ulmer; Editing by Andrew Cawthorne and Andrew Hay)