A black market refers to an underground operation which is normally against the rules set by an institution

A black market refers to an underground operation which is normally against the rules set by an institution. The activities carried in a black market are normally illegal, especially in foreign exchange transactions. Additionally, the black market for currency arises due to high inflation rates. In Venezuela, the black market is an issue of concern because it allows people to convert their currency into dollars in order to purchase cheaper goods from the U.S.

The black market has impacted Venezuela negatively and based on a report by AFP on January 28th, 2019, Venezuela’s Bolivar is currently valued at 248,567.75 Bolivars per one dollar which is a decrease from its previous value. The reduction of value is meant to match the value of the currency in the black market in order to create balance. However, this reduction might scare a lot of people who do not want to risk losing the value of their money.

https://www.marketwatch.com/story/venezuela-devalues-currency-to-align-with-black-market-afp-2019-01-28

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