Venezuela's Chavez Announces Currency Devaluation
Posted: Saturday, January 9, 2010
By Kiraz Janicke
January 09, 2010 - Venezuelanalysis.com
Venezuelan President Hugo Chavez announced a devaluation of the official exchange rate of the bolivar currency and the creation of a second rate denominated the "oil bolivar" for non-essential imports, in a nationally televised address on Friday.
The bolivar would be devalued from 2.15 per dollar to 2.6 per dollar, Chavez said, while the "oil bolivar" will be pegged at 4.3 per dollar. The measure represents a 17 percent and 50 percent devaluation respectively.
The Venezuelan government moved to regulate foreign currency exchange in 2003 after a two month long bosses lockout in the oil industry aimed at ousting the democratically elected Chavez from power caused an estimated $20 billion damage to the economy. The latest devaluation is the first since an 11 percent devaluation in March 2005.
Full Article : venezuelanalysis.com