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The central bank set an implicit exchange rate of about 5.3 Bolivars per USD in a new currency market in hopes of controlling inflation and the black market in foreign exchange. The official trading band ranges between 4.3 and 5.3 per USD. Under the previous system, President Chavez blamed currency speculators for inflation and said brokerages, which performed bond swaps for clients to obtain dollars, were fueling capital flight, laundering money and setting artificial exchange rates. Individuals will be limited to 5,000 USD per year. “About 90% of the operations were done at 5.3” said Central Bank President Nelson Merentes. “We knocked down the price."
