Motorizados in Caracas

I found this link about motorcyclists in Caracas a couple months ago and have been thinking about it lately. Well, I'll admit it- I've been thinking about them because I've been on the road a lot in the last few weeks and they have been a source of my stress. This video intrigued me because it fairly accurately portrays the traffic situation here, and how dangerous the motorcycles really are. Much of the video is shot in Chacao, the only place in Caracas you will see a substantial number of police enforcing traffic laws, one of the safest (and my favorite) areas.

I had my first experience with the motorcycle "gangs" (I put it in quotations because I think most of the time the bikers don't know each other well, but group together to get through a red light or protect each other) on the way to Caracas from the airport for the first time. I remember being dumbstruck as I watched as cars moved to let an ambulance pass by and the ambulance had a motorcycle tail. That is, it looked as if the group of tightly packed motorcyclists were somehow attached to the bumper, as they stayed close behind it in lines. Besides the fact that I hadn't slept the night before and was having trouble processing all of the new stimuli, this motorcycle tail just didn't make sense to me. I asked the people I was with, and they explained it simply enough- the motorizados are taking advantage of the fact that traffic is moving aside to let the ambulance through, and if they stay close behind, they too can pass before the traffic fills in the gaps once again.

I won't deny it- I have almost been hit by these motorcycle drivers and have heard many stories about car drivers clipping them because of the erratic driving habits they have. My roommate has had to take a moto taxi so as not to arrive late to work. I asked her if she was scared and she said that, yes, it made her nervous, but that she had no choice- it was the fastest way to get to work. Ironically, this unsafe way of transportation is actually more expensive than a regular taxi. Weaving through the cars, I have seen many drivers suffer road rage- the car drivers because the motorizados get too close to the cars and get very close to causing accidents and the motorizados because the car drivers didn't pull over far enough for them to zip through the line of cars.

One of the scariest things that can happen to a driver is to hit a motorizado. Regardless of the outcome or if there is substantial damage to the motorizado or his moto, he will find himself literally surrounded by every motorizado that happened to be passing through. The motorizados stick together and protect themselves, no matter if they are in the right or not. It can be frustrating and at times traumatizing for someone used to somewhat strict traffic laws (I mean in the US) and some degree of law and order. A friend of mine clipped a motorcycle not too long ago and was pressured to pay for the parts that he had supposedly broken when he hit the moto. He had been told that, if he was ever in that situation, to remain calm and not lose his cool, even if other motorizados showed up and started threatening.

Once, while coming home from a beach trip, we saw a motorcycle weave through traffic, miscalculate and fall over. Nothing happened to the moto nor the guy, but immediately traffic stopped and I saw the other motorizados arrive. There were 6 of us in the car and the only one who is also a motorizado wanted to jump out of the car and help the guy. The rest of us were in the process of making sure our doors were locked! It was the strangest feeling in the world- in that moment I felt like that friend and I were complete strangers because our reactions were so different.

My point is, if you ever come to Caracas, please please please be careful around the motorizados and don't expect them to stay off the sidewalks just because you're on them! Don't worry mom, I always watch out!

Money, money, money

100 Bolívares

50 Bolívares

20 Bolívares


Does anyone really understand how this whole money thing works down here?? Between the inflation, black market dollar and CADIVI, I still get confused.


Now let's back up to the basics. The official currency of Venezuela is Bolívares Fuertes (BsF). Up until January 2010 $1=2.15BsF. This all sounds well and good until you take the following into consideration:

McDonald's Combo Meal: approx. 35BsF =$16.28!!

Normal, everyday Sedal or Herbal Essences shampoo or conditioner: approx. 19BsF=$8.84

Decent quality computer table (one that might cost $50 in the US): approx. 550BsF=$256

Liter of boxed, radiated (not fresh) milk (1/4 of a gallon=quart): 4-6BsF=$1.86-2.79

250 grams (0.55lbs) turkey breast: 24BsF=$11.16

Now you can start to see where problems arise. The prices here in Venezuela are based on the dollar's value in the black market. The black market?! Yes, the black market.

The "dólar paralelo," or "parallel dollar" value varies depending on how many dollars are floating around the Venezuelan economy, which is a direct result of how many dollars the government makes available to buy (it's quite complicated to explain-I'm still trying to understand it), supply and demand. As of today, the rate is at $1=6.05BsF. Since I've been here, the rate has varied between $1=5-6.5BsF. If you take this rate into consideration, the prices listed above make more sense. At a rate of $1=6BsF, the prices become the following:

McDonald's Combo Meal: approx. 35BsF =$5.83

Normal, everyday Sedal or Herbal Essences shampoo or conditioner: approx. 19BsF=$3.17

Decent quality computer table (one that might cost $50 in the US): approx. 550BsF=$91.67

Liter of boxed, radiated (not fresh) milk (1/4 of a gallon=quart): 4-6BsF=$0.67-1

250 grams (0.55lbs) deli turkey breast: 24BsF=$4

Seems a bit more reasonable, no?

But how does one obtain BsF "legally" at the official rate and how does one obtain BsF in the black market? The legal way would be by using a foreign credit card, transferring money to a bank account here or other "normal" ways to access money abroad. However, most tourists, knowing ahead of time of the potential problems that may arise when going through these legal channels and being fully aware of the fact that they will be getting very little BsF for their buck, find other ways to exchange their money.

I've had many conversations with Venezuelans about this subject and they've explained how the black market works. It's essentially quite simple: you find the most trustworthy person you can(which in the case of very short trips, may be the hotel or tour guide) and ask them to exchange your dollars. Exchange rates are negotiable- sometimes your trustworthy person will offer you less than the black market rate... and other times you will be offered even more than the black market rate if there is competition for your dollars. Voilá! You now have BsF... just cross your fingers that they're not counterfeit!

Everyone still with me?

Now let's jump the money fence to get to the typical Venezuelan's side. CADIVI (the Venezuelan commision for the administration of currency=the ones who decide how many bolivares you can exchange per year) is both their best friend and worse enemy: best friend because it is the only way for them to exchange their BsF for dollars (legally)... enemy because there are strict limitations on how many BsF they can exchange. Say you want to take a long weekend getaway to Aruba or Curacao. You have to consult here to find out how much money you will be allowed to exchange. Refer to the second chart down, where it says Destinos perjudicados: Panamá, Colombia y otras Islas del Caribe. Aruba and Curacao fall under the third category, "Otras Islas del Caribe". If you're going for 1-3 days, you are allowed to exchange $500, for 4-7 days, $700. Wait a minute? For one day I can get $500, but for 7, only $700?? I've been told that hotel rooms in Curacao can cost around $100 a night in some places. So with what money do you pay for transportation? Buy food? Drinks? These are questions I've asked myself a lot recently.

Also, if you'd like to buy anything online (where most companies do NOT accept bolivares), you have to have a credit card (that you've had for at least a year, from an approved bank) and fill out allllll kinds of paperwork in quintuplicate, black and white...or was it grayscale? (I'm not kidding, really!) yet can only spend $400... a year! Same goes for applying for travel money. In the short time I've been here, I've already seen how difficult the process is. My roommate is going through it now. She waited for 3 hours in the bank, just to get to the teller and be told that they couldn't accept her application...because the cover page was printed in color (as it appears on the website).

Let's return to the concept of the black market. Because of the monetary restrictions placed on Venezuelans wishing to travel, many solicit the "help" of those who have dollars, and are willing to pay around 6BsF for every precious dollar they can get. The advantageous rate you get from the government seems great in comparison- but it just simply isn't enough to cover your vacation costs.

With all of these exchange rates around, which one do you pick? Obviously the ideal situation is for the Venezuelan to exchange his or her BsF at the rate of $1=2.15BsF discussed earlier. But wait! As of a couple of weeks ago, you can no longer get that rate. President Chávez devalued the bolívar in January. The following is an excerpt from the CIA World Factbook explaining it:

In January, 2010, CHAVEZ announced a dual exchange rate system for the fixed rate bolivar. The system offers a 2.6 bolivar per dollar rate for imports of essentials, including food, medicine, and industrial machinery, and a 4.3 bolivar per dollar rate for imports of other products, including cars and telephones.

Translation, please? All of the products, like washing machines, cars, telephones, so-called "non-essential" products that are imported, just doubled in price. A phone that was imported for $100 and sold for 215BsF is now going to cost 430BsF. When this went into effect, many stores immediately doubled their prices on electronics (even though they should've sold the remaining stock at the former prices and changed them once they got new stock in) and the national guard was called in. For food and other essentials, this should bring the price down. Before, the stores had to get their dollars however they could, often buying at the 6BsF rate. Now that they have a legal way of obtaining 2.6, the price should, in theory, go down. However, I have noticed that this is not the case. I obviously am not an expert and haven't been to all of the grocery stores, but I have noticed an increase in the ones I have visited.

The economic system here is enough to make your head spin... I have never studied economics, but even if I had, I think this is a special case that would be complicated for most to understand. Even so, Venezuela is my home right now and I'll keep working to make sense of this complicated situation.