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The impact of oil price fall on Venezuelan economy 2016-02-21 오후 1:06:00

Possesing rich oil resources, Venezuela has reached the level of newly deveoping countries based on enormous oil money. But now, this precious resource is dragging its economy down because of recent fall in oil price. There are two main impacts on economy.
The first Impact is inflation. Since the main income of Venezuela is through oil, the oil price fall results in inflation. This last affects common people's life. For example, there is a common food called Arepa made with corn and other ingredients that Venezuelan people enjoy regulary. As inflation occurs, the restaurant selling Arepa, before fulled during lunch time, now are empty. Therefore, inflation gives a hardship to common people's life.
Secondly, the currency dropped a lot. Generally, the value of currency in one country depends on how much foreign money enters. Economy started to collapse because of lack in foreign exchange reserves caused by low oil price. Since Venezuela primarily depends on foreign currency earned by selling oil, its economy is now in an unprecedented recession.
In conclusion, oil price fall caused inflation and decrease in currency which result in serious recession on Venezuela's economy. In this situation, Venezuela is full of riots, plunders or robberies leading to a boom in security guard service.

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