26 arrests in new Venezuela crackdown on dollar black market
CARACAS : Venezuelan authorities have detained 26 people in a fresh crackdown on the dollar black market, bringing the total number of arrests in recent days to 50, the country's top prosecutor said Saturday.
'The total number of detainees for economic crimes and illegal sale of foreign currency… is 50,' attorney general Tarek William Saab told AFP.
The arrests come as Venezuela's government seeks to rein in a foreign exchange black market that developed after a 2018 decision to allow the use of US dollars to pay for goods and services in the country.
That decision aimed to deal with the effects of runaway inflation that rendered the domestic currency, the bolivar, essentially worthless.
The dollar has since then become the de facto currency in Venezuela. Caracas never opted for formal dollarization, and has instead pegged the value of the local currency to the greenback.
The black market has swelled as high demand for dollars has far outpaced their availability through official channels.
For years, the black market was tolerated.
Things changed in 2024 when the gap between the official and 'parallel' rates expanded quickly, bringing fresh inflationary pressure for the oil-rich but chronically mismanaged and heavily sanctioned South American country.
After months of stability with similar rates, the black market dollar had in recent weeks been trading between 25% and 50% higher than the official rate to the bolivar, before narrowing again.
On Saturday, the official price was trading at $1 against 99.09 bolivares, while on the black market, the dollar was quoted at 115.37 bolivares, after soaring to 150 for some operators a few weeks ago.
This gap in rates has raised fears of a return to hyperinflation, severe recession and shortages.
The government, which had long ignored the black market, suddenly toughened its stance, with mass arrests over what president Nicolas Maduro has dubbed the 'criminal dollar.'
The rate gap has widened since Washington's decision to reverse an easing of the oil embargo imposed on Venezuela, pushing up prices and depressing the bolivar.
The return to a 'hard' embargo in effect deprives Venezuela of dollars on the international market, even as Caracas is rushing to inject millions of dollars into the market to prevent its exchange rate gap from widening.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Free Malaysia Today
17 hours ago
- Free Malaysia Today
Dollar weakens as rate cut odds rise, tariff uncertainties linger
The dollar index hit 98.688 after touching a one-week low earlier in the session as traders priced in a 94.4% chance of a September rate cut. (AFP pic) SINGAPORE : The US dollar wavered on Tuesday as the rising odds of Federal Reserve rate cuts weighed on sentiment, while investors assessed the broader economic impact of US tariffs unleashed last week. The dollar remained under pressure following Friday's US jobs report that showed cracks in the labour market, prompting traders to swiftly price in rate cuts next month. US President Donald Trump's firing of a top statistics official and the resignation of Federal Reserve governor Adriana Kugler also exacerbated market unease, leading to a sharp dive in the dollar on Friday. The US currency found its footing on Monday but was weaker in early trading on Tuesday. The euro last bought US$1.1579 while sterling stood at US$1.3298. The dollar index, which measures the US currency against six other units, was at 98.688 after touching a one-week low earlier in the session. Traders are now pricing in a 94.4% chance of the Fed cutting rates in its next meeting in September, compared to 63% a week earlier, CME FedWatch tool showed. Goldman Sachs expects the Fed to deliver three consecutive 25 basis point cuts starting in September, with a 50 basis point move possible if the unemployment rate climbs further in the next report. San Francisco Federal Reserve Bank president Mary Daly said on Monday that given mounting evidence that the US jobs market is softening and no signs of persistent tariff-driven inflation, the time is nearing for rate cuts. 'I was willing to wait another cycle, but I can't wait forever,' Daly said. Meanwhile, the focus remains on tariff uncertainties after the latest duties imposed on scores of countries last week by Trump, stoked worries about the health of the global economy. The Japanese yen firmed slightly to 146.95 per dollar after minutes of its June policy meeting showed a few Bank of Japan board members said the central bank would consider resuming interest rate increases if trade frictions de-escalate. The Swiss franc was steady at 0.8081 per dollar after dropping 0.5% in the previous session as Switzerland geared up to make a 'more attractive offer' in trade talks with Washington to avert a 39% US import tariff on Swiss goods that threatens to hammer its export-driven economy. The long-term impact of the tariffs though remains uncertain, with traders bracing for volatility. 'This is going to be like the pandemic, we all expect to see the transitory impact on supply chains to happen very quickly,' said Rodrigo Catril, currency strategist at National Australia Bank in Sydney. 'It'll probably take six months to a year to see exactly where we land and who's going to be winners and losers from all this.' In other currencies, the Australian dollar was 0.11% higher at US$0.64736, while the New Zealand dollar rose 0.11% to US$0.5914. 'We're still of a view that the big dollar is heading down,' Catril said, referring to the US dollar. 'While global growth means pro-growth currencies like Asian currencies and the AUD should struggle, we've other structural dynamics in the USD, where policies are dollar-negative.'
Malay Mail
19 hours ago
- Malay Mail
Brazil ex-president Bolsonaro placed under house arrest for flouting social media ban
BRASILIA, Aug 5 — A Brazilian judge yesterday placed former president Jair Bolsonaro under house arrest for breaking a social media ban, escalating a dramatic standoff between the court and the far-right politician accused of plotting a coup. Bolsonaro, an ally of US President Donald Trump, is on trial at the Supreme Court for allegedly plotting to cling onto power after losing 2022 elections to President Luiz Inacio Lula da Silva. Last month, he was ordered to wear an ankle bracelet and barred from using social media after being accused of trying to disrupt the trial with fiery speeches shared online by his sons and allies. Under the ban, third parties are barred from sharing his public remarks. On Sunday, allies of Bolsonaro, 70, defied the court order by broadcasting a live call between the former army captain and his son at a solidarity rally in Rio de Janeiro, one of several held across Brazil. Supreme Court Justice Alexandre de Moraes reacted furiously, declaring yesterday that the judiciary would not allow a defendant to 'treat it like a fool' because of his 'political and economic power.' Criticizing Bolsonaro's 'repeated failure' to comply with the court's restrictions, he ordered him placed under house arrest at his home in the capital Brasilia. He also barred the country's former leader (2019-2022) from receiving visitors, apart from his lawyers, and from using any mobile phones. The new measures were expected to be met with fury in Washington. Last week, Trump already imposed massive tariffs on Brazil and sanctioned Moraes for what he termed his 'witch hunt' against Bolsonaro. Thank you Trump Trump's pressure campaign, including 50-percent tariffs on a raft of Brazilian goods, including coffee, has endeared him to Bolsonaro's conservative base. At Sunday's rallies, some demonstrators waved US flags or held signs reading 'Thank you Trump.' Bolsonaro himself did not attend the rallies, having been ordered by the Supreme Court to stay home at night and at weekends throughout the trial. He faces a heavy prison sentence in the trial, which is expected to be concluded in the coming weeks. The crusading Moraes has become a figure of hate on the Brazilian and American right for taking the fight to the far right. He has repeatedly clashed with Bolsonaro as well as X owner Elon Musk, whom he accuses of failing to fight disinformation. — AFP
Malay Mail
a day ago
- Malay Mail
Atlas Lithium's Neves Project Completes Definitive Feasibility Study Estimating 145% IRR and 11-Month Payback
[email protected] Boca Raton, Florida - Newsfile Corp. - August 4, 2025 - Atlas Lithium Corporation (NASDAQ: ATLX) ("Atlas Lithium" or "Company"), a leading lithium development company, is pleased to announce that SGS Canada Inc. ("SGS") has completed the Definitive Feasibility Study ("DFS") for the Company's 100%-owned Neves Lithium Project ("Project"), a technical report prepared under the U.S. guidelines of Item 1300 of Regulation S-K ("Regulation S-K 1300"). This hard-rock Project is well-suited to being a low-cost open-pit mining operation, as its spodumene deposits are located relatively close to the surface. Located in the state of Minas Gerais, Brazil, the Project encompasses 4 of the 98 mineral rights for lithium owned by Atlas Lithium. As detailed in the DFS, the Neves Project is expected to deliver strong financial metrics with an internal rate of return ("IRR") of 145%, payback in 11 months from the start of operations, and an after-tax net present value ("NPV") of $539 million. Importantly, the DFS estimates the Neves Project to have operational production costs of only $489 per tonne of lithium concentrate, positioning Atlas Lithium among the world's lowest-cost producers. Complete details of these metrics can be found in the DFS, filed with the Securities and Exchange Commission as an exhibit to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025. Marc-Antoine Laporte from SGS serves as the Qualified Person for the DFS under Regulation S-K 1300. SGS is well-known as a global leader in testing, inspection, and certification services for mineral properties and DFS supports that expected direct capital expenditures of $57.6 million will be needed for the implementation of the Project, by far the lowest such capital costs among other announced projects in Brazil. Notably, Atlas Lithium has already invested approximately $30 million in acquiring and transporting the Project's newly fabricated dense media separation ("DMS") plant to Brazil, as previously reported. The Company has secured two non-dilutive pre-payment agreements for its lithium concentrate totaling $40 million and has received additional funding interest from other parties, including 10-year debt financing options, any of which could support the Project's capital Company believes that the DFS validates the Project's strong economics, positioning it among the most capital-efficient and lowest-cost hard-rock lithium developments globally. The Project will employ proven DMS technology, with comprehensive metallurgical testing demonstrating an expected robust lithium recovery rate of 61.7% to produce high-quality, low-impurity lithium concentrate. This relatively straightforward, low-risk DMS processing methodology minimizes technical complexity and operational risk while enabling a low environmental Lithium's mineral right to be mined, as detailed in the DFS, received its "Portaria de Lavra" (mining concession) status from Brazil's Ministry of Mines and Energy on May 27, 2025 — the highest level of titleship in Brazil and one that allows continuous mining operations. Multiple deposit areas within the Project remain open for resource expansion along strike and at depth and are thus expected to extend the life of mine. Additionally, numerous high-potential geological targets remain within the Project's mineral rights, providing compelling opportunities for future in the established Araçuaí Pegmatite District in the Vale do Jequitinhonha, often called Lithium Valley, the Project benefits from favorable infrastructure, including proximity to transportation networks, water resources, and skilled labor. The Project qualifies for tax incentives from the Superintendency for the Development of the Northeast (SUDENE), as promulgated by Brazil's Ministry of Integration and Regional Development, reducing the corporate tax rate from 34% to 15.25% and further enhancing profitability."The DFS indicates potentially outstanding returns for our initial vision of developing a focused, near-term, profitable lithium production asset with minimal capital requirements," said Marc Fogassa, Chairman and CEO of Atlas Lithium. "The combination of our low capital intensity and rapid payback period is expected to create exceptional value for our shareholders while positioning Atlas Lithium to benefit from future organic expansion opportunities at Neves and other high-potential lithium areas that we own. Importantly, we are creating many quality employment opportunities in the Vale do Jequitinhonha region, representing a significant societal contribution of our Project."Following his leadership role in collaborating with SGS on the DFS, project implementation activities are being supervised by Eduardo Queiroz, Atlas Lithium's Project Management Officer (PMO) and Vice President of Engineering. Mr. Queiroz has more than two decades of hands-on experience managing complex, large-scale mining projects."The DFS demonstrates the technical robustness of the Project, with proven DMS technology and comprehensive metallurgical test work validated by SGS, a premier firm in the lithium space," said Mr. Queiroz. "With our processing plant fully fabricated and paid for, and now with the DFS in hand, we have systematically de-risked the Project. I am excited to lead the implementation phase of Atlas Lithium's journey to becoming a lithium producer."Atlas Lithium is strategically positioned to capitalize on its extensive regional lithium exploration portfolio in Brazil, particularly through advancement of its Salinas Project and Clear Project, both 100% owned by the Company. Atlas Lithium's Salinas Project is just 5 miles east of the Colina lithium asset previously owned by Latin Resources — a major factor in Pilbara Minerals's acquisition of that company in 2024 for approximately $370 million. At the Salinas Project, Atlas Lithium has already achieved promising initial results, including the discovery of spodumene-rich pegmatites very close to the surface, and highly positive results from soil geochemistry and from LIDAR geological Lithium's Clear Project is located less than 4 miles from Sigma Lithium's operating lithium mine, and represents significant untapped potential with highly positive results from soil geochemistry and from LIDAR geological Lithium also owns approximately 30% of Atlas Critical Minerals Corporation (OTCQB: JUPGF), a separate company with exploration programs in uranium, rare earths, titanium, and graphite. Atlas Lithium Corporation (NASDAQ: ATLX) is a lithium development company focused on advancing its Neves Project to production. The Neves Project's Definitive Feasibility Study demonstrates excellent economics with a 145% IRR, $539 million NPV, and an 11-month payback. The Neves Project has received operational permitting, and its dense media separation plant has been acquired and transported to Brazil. With approximately 539 square kilometers of lithium mineral rights, Atlas Lithium owns the largest lithium exploration footprint in Brazil among publicly listed companies. Additionally, Atlas Lithium currently holds an approximate 30% ownership stake in Atlas Critical Minerals Corporation (OTCQB: JUPGF).This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based upon the current plans, estimates and projections of Atlas Lithium and its subsidiaries and are subject to inherent risks and uncertainties which could cause actual results to differ from the forward-looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of production, reserves, sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in Brazil, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: Atlas Lithium's ability to successfully assemble and begin operations of its modular plant; reaching estimated production, development plans and cost estimates for the Neves Lithium Project as reported in the Definitive Feasibility Study (the "DFS"); discrepancies between actual and estimated mineral reserves and mineral resources, between actual and estimated development and operating costs, and between estimated and actual production; results from ongoing geotechnical analysis of projects; business conditions in Brazil; general economic conditions, geopolitical events, and regulatory changes; availability of capital; Atlas Lithium's ability to maintain its competitive position; manipulative attempts by short sellers to drive down our stock price; and dependence on key risks related to the Company and its subsidiaries are more fully discussed in the section entitled "Risk Factors" in the Company's Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 28, 2025, and in the Company's Form 10-Q filed with the SEC on August 4, 2025. Please also refer to the Company's other filings with the SEC, all of which are available at . In addition, any forward-looking statements represent the Company's views only as of today and should not be relied upon as representing its views as of any subsequent date. The Company explicitly disclaims any obligation to update any forward-looking GuytonVice President, Investor Relations+1 (833) 661-7900 The issuer is solely responsible for the content of this announcement. About Atlas Lithium Corporation
