CARACAS, Venezuela (AP) — Venezuelan President Hugo Chavez has announced a currency devaluation for the first time since 2005.
Chavez says Venezuela’s currency, the bolivar, will now have two government-set rates depending on the use, either 2.60 to the dollar for transactions deemed priorities by the government or 4.30 to the dollar for other transactions.
The currency’s official exchange rate has been held steady by the government at 2.15 bolivars to the dollar since 2005.
Chavez also said Friday night that the government will intervene in the lucrative parallel bond market, where the bolivar has recently been fetching about one-third of the official rate. He did not give details about what actions the government would take.
