Latin America
Related: About this forumU.S. companies face billions in Venezuela currency losses, Reuters analysis shows
At least 40 major U.S. companies have substantial exposure to Venezuelas deepening economic crisis, and could collectively be forced to take billions of dollars of write downs, a Reuters analysis shows.
The companies, all members of the S&P 500, and including some of the biggest names in Corporate America such as autos giant General Motors <GM.N> and drug maker Merck & Co Inc <MRK.N>, together carry at least $11 billion of monetary assets in the Venezuelan currency, the bolivar, on their books.
The official rate is at 6.3 bolivars to the dollar and there are two other rates in the government system known as SICAD 1 and SICAD 2 at about 12 and 50. The black market rate, though, was at about 190 bolivars to the dollar on Sunday, according to the website dolartoday.com.
The problem is that the dollar value of the assets as disclosed in many of the companies' accounts is based on either the rates at 6.3 or 12 and only a limited number of transactions are allowed at those rates. The assets would be worth a lot fewer dollars at the 50 rate in the government system and the dollar value would almost be wiped out at the black market rate.
http://news.yahoo.com/u-companies-face-billions-venezuela-currency-losses-reuters-061749734--sector.html
Fred Sanders
(23,946 posts)2 trillion dollars offshore to avoid paying their taxes to the hardworking folks of America that make their very existence possible?
Get me my fiddle, ma!
Kelvin Mace
(17,469 posts)Sell cars, don't speculate in currencies.
Newest Reality
(12,712 posts)and went to get a tissue and then it hit me:
Surely the Republicans and even Wall St. will work hard to somehow find a way for us to pay for that.
We are now the proverbial "whipping boys" and girls. We just have to wait for the call to bend over and drop 'em.
No problem!