Venezuela Devalues its Currency -Friday Feb 8,2013

Venezuela’s Govt announced on Friday Feb 8,2013 that it is devaluing the country’s currency, a long-anticipated change expected to push up prices in the heavily import-reliant economy. 

Officials said the fixed exchange rate is changing from 4.30 bolivars to the dollar to 6.30 bolivars to the dollar

The devaluation had been widely expected by analysts and was the first devaluation to be announced by Chavez’s government since 2010, and it brought down the official value of the bolivar by 46.5 per cent against the dollar

Venezuela’s government has had strict currency exchange controls since 2003 and maintains a fixed, government-set exchange rate. Under the controls, people and businesses must apply to a government currency agency to receive dollars at the official rate to import goods, pay for travel or cover other obligations.