Chavez seen delaying new devaluation in Venezuela

[Zorro]

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Venezuelan President Hugo Chavez will refrain from devaluing the country's currency in the run-up to general elections in October, even though a depreciation would help boost funding for social programs popular with voters, analysts say.

Venezuela's bolivar currency remains overvalued, despite being devalued twice during 2010, local and Wall Street economists say. Devaluations are a painful move since they boost the cost of imported goods, on which Venezuela is highly dependent, notably food.

A new devaluation would hit the pockets of Venezuelans already saddled with one of the highest inflation rates in the world: 26.9 percent during the 12 months through October.

But it would boost the spending power of a government that mostly receives payment for its main export -- nearly 2.5 million barrels of crude oil a day -- in hard currency.

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More at: http://uk.news.yahoo.com/chavez-seen-delaying-devaluation-venezuela-152154404.html