News / Americas

Venezuela Devaluing Its Currency

People withdraw money from cash machines where election propaganda supporting Venezuela's President Hugo Chavez cover the nearby walls in Caracas, February 8, 2013.
People withdraw money from cash machines where election propaganda supporting Venezuela's President Hugo Chavez cover the nearby walls in Caracas, February 8, 2013.
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VOA News
Venezuela has announced it is devaluing its currency in the hope of boosting economic growth.

Starting next Wednesday, the fixed exchange rate will go from 4.30 bolivars to the dollar to 6.30.

The Venezuelan government strictly controls the currency exchange to limit available dollars and avoid currency flight.

But the shortage of dollars has created a thriving black market currency exchange. It has also boosted the price of imports, leading to shortages of some basic goods.

The devalued bolivar is expected to make Venezuelan exports cheaper on world markets.

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