Venezuela devalues currency for first time since 2010

[Zorro]

Venezuela's government announced on Friday that is devaluing the country's currency, a change expected to push up prices in the heavily import-reliant economy.

Officials said the fixed exchange rate is changing from 4.30 bolivars to the dollar to 6.30 bolivars to the dollar.

The devaluation had been widely expected by analysts in recent months. It was the first devaluation to be announced by President Hugo Chávez's government since 2010.

Planning and finance minister Jorge Giordani said the new rate takes effect immediately, though the old rate would still be allowed for some transactions that were already approved by the state currency agency.

http://www.theguardian.com/world/2013/feb/08/venezuela-devalues-currency

[Socialistlemur]

1. This is old news!!!

This devaluation took place in February. It wasn't enough so they opened a secondary market, called SICAD which is reported to run at around 10 bolis per usd. The fair rate ought to be about 12 to 14, the black market is 32. The exchange rate system is in chaos and there's a lot of government losses due to money cycling. It's a huge mess, and it feeds the 40 % inflation rate and the ongoing food shortages.