12. Venezuelan Bolivar (B). The Venezuelan political and economic crisis deepened in late 2002 and early 2003. On January 1, 2003, the bolivar was trading at Bs1400/$. By February 1, its value had fallen to Bs1950/$. Many currency analysts and forecasters pre- dicted that the bolivar would fall an additional 40% from its February 1 value by early summer 2003.

a. By what percentage did the bolivar change in value in January 2003?

b. If the currency forecasters are correct, what would the bolivar's value be against the dollar in June 2003?