Venezuelans race to spend before devaluation

[Bacchus4.0]

http://www.afp.com/en/news/topstories/venezuelans-race-spend-devaluation

Venezuelans swamped stores to snap up everything from washing machines to plane tickets in a last-minute wave of panic-buying ahead of a 32 percent currency devaluation.

Venezuela will devalue its currency against the US dollar from Wednesday on the orders of President Hugo Chavez, who is convalescing in Cuba following cancer surgery in December.

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Chavez hopes effect of the devaluation will be to make Venezuela's exports cheaper and thus more enticing to buyers. Another is to cut the deficit, which in Venezuela last year was estimated to be nearly 10 percent of GDP.


Venezuela has had foreign currency exchange controls since 2003

[Bacchus4.0]

1. Commerce Secretary Betancourt: We can't let prices of inventory be modified. (Span)

http://el-nacional.com/economia/Betancourt-podemos-modifique-precios-inventarios_0_136787218.html


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“Si hay un ajuste de la divisa al día siguiente ellos (comercios) cambian de precios los productos. Para poder ajustar precios debe traer los productos con el nuevo cambio. Todavía no hay aquí un producto que hayan traído a 6,30. (…)No podemos dejar que se modifique los precios a los inventarios. Si lo trajeron con divisas vinieron a 4,30”, dijo en entrevista con VTV.

Hizo un llamado a la población a que no realice compras nerviosas al tiempo que instó a los locales que no realicen remarcaje de precio “porque los vamos a cerrar”.

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She called for the people to not make nervous purchases and demanded that merchants not modify prices or they will be shut down.