Venezuela Devalues Its Currency (by nearly 47%)

[Judi Lynn]

2. Venezuela devalues bolívar by 32 per cent

February 8, 2013 11:38 pm
[font size=5] Venezuela devalues bolívar by 32 per cent [/font]
By Benedict Mander in Caracas

Venezuela’s government devalued its currency by 32 per cent, in a bid to alleviate a growing fiscal deficit and shortages of foreign currency.

The shift in the official exchange rate from 4.3 bolívars to the dollar to 6.3 bolívars, is the fifth time that Venezuela has devalued its currency since implementing strict currency controls in 2003. The most recent devaluation was in January 2010.

Officials said that an absent president Hugo Chávez ordered the devaluation from Cuba, where he has been for two months recovering from cancer surgery.

Although the move is expected to ease pressure on strained fiscal accounts, it is also likely to fuel inflation, which is running at around 20 per cent.

More:
http://www.ft.com/intl/cms/s/0/6cfdb6ae-7243-11e2-896a-00144feab49a.html#axzz2KMIHT7aD