08 February 2013

VENEZUELA : 09 Feb UPDATE: Caracas Finally Devalues Bolivar...By 32%.

       IST LINK CHANGE/ New details with opposition reaction.

    The bolivar's devaluation has been expected for months...but President Chavez's renewed cancer challenge delayed it...until Friday.
     For the 5th time...in 9 years...Caracas finally weakened its exchange rate...this time...by 32%...to 6.3 bolivares per usd.
     It had been 4.3 per usd.
     Officials say President Chavez ordered the adjustment from La Habana.
     The devaluation will help lower the nation's budget deficit...greatly increased during a presidential pre-election spending splurge.
     Observers say it will give Caracas $13.4 billion more in revenue from oil sales...and could reduce the deficit by 50%.
     Some experts expect more adjustments.
     On the black market...the website Lechuga Verde reports the bolivar dropped to 19.53 per usd.