Scam at previous Venezuela parallel rate site

Scam at previous Venezuela parallel rate site

Reblogged from The Devil´s Excrement


Moraima Garcia Says:
March 27, 2013 at 11:25 am
Glenn, in truth there is more to the Lechuga Verde case, apparently they were running a scam, selling people dollars at lower prices (apparently dollars they got from SITME) and at some point they stopped paying peolple. There is a web page of the victims with very direct threats to the people of Lechuga Verde. Not sure if the creators of the site have been arrested or even if people really know who they are, but from what you can read online it seems they were not saints wanting to give us information about the real price that must not be mentioned.

Reply

• Nicolaas Smith Says:

  
  March 27, 2013 at 11:59 am CNN indicates this site Dolar Today http://dolartoday.com/ quoting the parallel rate daily.”Precio del Dolar paralelo en Venezuela y noticias SIN CENSURA…” It seems to be a Colombian site.
  

  Reply

island canuck Says:

March 27, 2013 at 11:33 am There’s been some confusion about this.
Lechuagaverde.com was responsible for defrauding 100′s(?) of people by offering US$ at below market prices. After paying off a few early clients they just stopped paying the rest. A typical Ponzi scheme.
I think its these owners who Maduro was referring to.
In the meantime you will see efforts to block access to other sites inside Venezuela that post current rates. One notably is publishing the current price in Cucuta, Colombia (which is a legal & active market) & the Implicit rate (current Bs. in circulation (liquidity) divided by the international reserves on hand).
Efforts to block access are pretty useless as they also have Twitter & FB accounts.

Bloomberg:


Dollar-Desperate Venezuelans Get Defrauded on Internet

Parallel rate in Venezuela

Parallel rate in Venezuela

CNN indicates this site Dolar Today http://dolartoday.com/ quoting the parallel rate daily.”Precio del Dolar paralelo en Venezuela y noticias SIN CENSURA…”

It seems to be a Colombian site.

Nicolaas Smith

Copyright (c) 2005-2013 Nicolaas J Smith. All rights reserved. No reproduction without permission.

Official and parallel rate generally unify at the parallel rate

Official and parallel rate generally unify at the parallel rate

The experience with unification indicates that it usually takes place at the parallel exchange rate.

Parallel exchange rates in developing countries : lessons from eight case studies, Volume 1

Kiguel, Miguel A.; O'Connell, Stephen A.;

Policy, Research working paper; no. WPS 1265

Nicolaas Smith

Copyright (c) 2005-2013 Nicolaas J Smith. All rights reserved. No reproduction without permission.

Fundamental mistake in IFRIC 7

Dear Mr Hoogervorst,

Thank you for your reply dated 19 February.

I further wish to point out to you that there is a fundamental mistake in IFRIC 7 Applying the Restatement Approach under IAS 29 Financial Reporting in Hyperinflationary Economies as follows:

Par 3 Consensus states:

Therefore, in relation to non-monetary items measured at historical cost, the entity’s opening statement of financial position at the beginning of the earliest period presented in the financial statements shall be restated to reflect the effect of inflationfrom the date the assets were acquired and the liabilities were incurred or assumed until the end of the reporting period. For non-monetary items carried in the opening statement of financial position at amounts current at dates other than those of acquisition or incurrence, that restatement shall reflect instead the effect of inflation from the dates those carrying amounts were determined until the end of the reporting period.

Inflation has no effect on the real value of non-monetary items.

‘Purchasing power of non monetary items does not change in spite of variation in national currency value.’

Gucenme U and Arsoy A P 2005 Changes in financial reporting in Turkey, Historical Development of Inflation Accounting 1960 – 2005 Academy of Accounting Historians 2005 Research Conference 6-8 Oct 2005 Ohio State University Columbus Ohio USA (Second last item on website referenced.)

It is the stable measuring unit assumption, and not inflation, that affects the real value of non-monetary items. Inflation only affects the real value of monetary items.

Please change the word inflation in IFRIC 7, Par 3 above to “the stable measuring unit assumption”.

You stated in your reply to me that “It is important that our staff collaboration approach retains a degree of flexibilityand agility to respond to the circumstances.” I have found that to mean flexibility to ignore facts.

You are free to ignore the above fact too.

Yours sincerely,

Nicolaas Smith

Copyright (c) 2005-2013 Nicolaas J Smith. All rights reserved. No reproduction without permission.

The IASB has double standards

1. IAS 21, Par. 8: "Monetary items are units of currency held and assets and liabilities to be received or paid in a fixed or determinable number of units of currency."

2. IAS 29, Par. 12: "Monetary items are money held and items to be received or paid in money."


Here is the correct definition of monetary items:

Monetary items constitute the money supply.

For example: trade debtors (receivables) and trade creditors (payables) are not part of the money supply. They are not monetary items: they are constant real value non-monetary items.

 

Nicolaas Smith

Copyright (c) 2005-2013 Nicolaas J Smith. All rights reserved. No reproduction without permission.