Venezuela announced that devaluation rate administratively

11 January, the Bolivarian Venezuela currency dollar depreciation will be started. 8, Venezuela President Hugo Chavez announced the decision to make the country's currency devaluation of the channel, and enter from the original series-Exchange rate into a dual exchange rate.

Analysts believe that this would imply that the Government wants to promote the export of further determination. At the same time, the move will also help to Venezuela Government maintains a gradual decline of oil revenues, and to address the domestic economy of stagflation.

Chavez said that in 8-track system of exchange rate system, will allow the Government to promote the use of foreign exchange controls in the economy of strategic development of the industry, and other industry if you want to purchase US dollars from the Government, to pay a higher price.

In the new exchange-rate system, prior to 1 US dollar exchange rate of the Bolivarian 2.15 official will adjust to 1 dollars 2.6 Bolívar, food, medical products, equipment and technology imports, as well as the public sector of the exchange rate applicable to all imports, automotive, telecommunications products, chemical products and other goods and services import is used for "oil dollars" exchange rate 1 US dollar convertibility 4.3 Bolivar.

Chavez said that devaluation will promote the productive economy and prevent unnecessary import, and export promotion. He also said the Government's decision to devalue its currency, seeks to promote the production and promotion of economic development, he said it could not accept the opposition of "devaluation of the currency will rise after prices doubled" that the opposition is to create a panic among the public.

Analysts believe that the country is still in a recession, the Venezuela Government is seeking to prevent the further aggravation of inflation. News of the devaluation of the currency announced after Venezuela people flocked to the store buying goods. Fearing an unreasonable price hikes, President Chavez 10 may require soldiers seized the opportunity to drive up the price of the enterprise, that once you find the confiscation of property.

Chávez, reiterated that, in accordance with the old rate of imported goods cannot be sold to the customer charges. Chavez also announced that the Government is setting up a report calling for public oversight of the business, drive up prices and that the Government would be resolutely combat and seriously deal with this behavior.