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Venezuela's parliament rejects legitimacy of Maduro’s second term

Venezuela's parliament rejects legitimacy of Maduro’s second term

Venezuela's opposition-controlled National Assembly declared Nicolas Maduro's presidency illegitimate on 5th Jan 2019 calling on the military to support efforts to "restore democracy."

Maduro, who has presided over a virtual collapse of the economy in the once-rich OPEC member state, is set to be sworn in on Thursday for a second six-year term after holding controversial early elections on May 20 2018.

The elections were boycotted by most of the opposition and widely condemned by the international community.

On 04 Jan 2019, foreign ministers from 12 Latin American countries and Canada announced in Lima that their governments would not recognize Maduro as president if he attempts to remain in office and urged him to turn over power to the National Assembly.

Venezuela Crisis:

Venezuela's economy is in freefall.

Hyperinflation, power cuts, and food and medicine shortages are driving millions of Venezuelans out of the country.

Many are blaming President Nicolás Maduro and his government for the dire state the nation is in. 

Arguably the biggest problem facing Venezuelans in their day-to-day lives is hyperinflation. The annual inflation rate reached 83,000% in July 2018.

What is the reason behind this rich country going poor?

Venezuela is rich in oil, and has the largest proven reserves in the world. But arguably it's this exact wealth that underpins many of its economic problems.

Because it has so much oil, Venezuela has never bothered to produce much else. It sells oil to other countries, and with the dollars it earns, imports the goods Venezuelans want and need from abroad.

Its oil revenues account for about 95% of its export earnings. But when the oil price plummeted in 2014, Venezuela was faced with a shortfall of foreign currency.

This in turn made it difficult to import goods at the same level as before, and imported items became scarcer.

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