Venezuela Devalues

Venezuela Devalues

Venezuela Economy & Policy Corporate & Sovereign Strategy

Venezuela’s government has devalued its currency, bowing to inflationary pressure in a move that analysts say could have anti-Chavez political implications. The Bolivar has been reset to VEB6.30 per USD from VEB4.30. “Inflation [22.2% headline year-on-year] is now endemic and is likely to accelerate further in 2013,” Goldman Sachs says. Headline inflation has increased 98% since the previous devaluation, in January 2010. The FX devaluation should help ease some pressure on the strained fiscal ac

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