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Venezuela devalues currency 32% to help cut 11% of GDP fiscal gap

Saturday, February 9th 2013 - 09:32 UTC
Full article 44 comments

Venezuela devalued its currency for the fifth time in nine years as ailing President Hugo Chavez seeks to narrow a widening fiscal gap and reduce a shortage of dollars in the economy. The new exchange rate falls by 32% to 6.3 Bolivar per dollar starting Feb. 13, Finance Minister Jorge Giordani told reporters in Caracas. Read full article

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  • reality check

    Changes not seen or heard from for nearly two months, hmmmm!

    Feb 09th, 2013 - 09:46 am - Link - Report abuse 0
  • ChrisR

    Dead Man Not Walking coming through well on the séance then from his deep freeze in the mortuary.

    Do these commie twats think anybody with a brain believes this drivel?

    Still, the country with the largest reserves of proven oil deposits has to devalue the currency.

    You couldn’t make this up.

    Feb 09th, 2013 - 10:10 am - Link - Report abuse 0
  • ptolemy

    With Venezuela being the model for Argentina, I expect a devaluation of the pesos soon. It would go hand in hand with the recent price freezes, designed to combat a rush to buy,.. just before or after a devaluation. Not a time to own pesos. My take...

    Feb 09th, 2013 - 10:14 am - Link - Report abuse 0
  • reality check

    Chris
    They are not devaluating, they are adjusting accounts. LMFAO.
    Nice spin!

    Feb 09th, 2013 - 10:14 am - Link - Report abuse 0
  • Anglotino

    I so love being proven right!

    I called this nearly 2 years ago. He would get reelected and THEN devalue.

    I didn't predict him dying though! I think that's called icing on the cake.

    Feb 09th, 2013 - 10:43 am - Link - Report abuse 0
  • Frank

    Anybody want to run a book on how long this dead bloke can run the country? The limit would have to be the next election.... or until they run out of ice...

    Feb 09th, 2013 - 10:48 am - Link - Report abuse 0
  • ElaineB

    Apparently Chavez is receiving 'alternative' therapy. Hmmm.

    @3 There is no price control. The Argentine government stated this quite clearly in a press conference. It is just an agreement. *coughs*

    Feb 09th, 2013 - 11:08 am - Link - Report abuse 0
  • CaptainSilver

    Argentina next?..... Oops, its already happening!

    $1=8 pesos

    Feb 09th, 2013 - 11:17 am - Link - Report abuse 0
  • ptolemy

    @8
    yes, I know. I'm speaking for the “official rate” only.

    Feb 09th, 2013 - 11:47 am - Link - Report abuse 0
  • Ozgood

    Either Chavez gave his instructions through a medium in a seance or his Cuban doctors have wrought a modern medical miracle. Perhaps his medical team should be proposed for the next Nobel prize?

    Feb 09th, 2013 - 12:41 pm - Link - Report abuse 0
  • DanyBerger

    Mercopress says 32% Venezuela currency devaluation, “La Destruccion” old fashion necons newspaper says 46.5%.

    May be “Clarin MIente” comes with 62% who knows

    http://www.lanacion.com.ar//1553282-venezuela-reconocio-su-crisis-economica-devaluo-casi-un-50-su-moneda?utm_source=n_tis_nota2&utm_medium=titularS&utm_campaign=NLExt

    Feb 09th, 2013 - 01:03 pm - Link - Report abuse 0
  • Sergio Vega

    R.I.P. Venezuela......

    Sorry Venezuelans, it´s what you deserve......nothing more, nothing less......you elected a death man walking with no brain as president.....for a democratic dictatorship.

    Feb 09th, 2013 - 01:10 pm - Link - Report abuse 0
  • FritzS

    The devaluation is 46.5%, not 32%.
    It's simple math ... going from 4.3 to 6.3 = 46.5% devaluation.

    Feb 09th, 2013 - 01:44 pm - Link - Report abuse 0
  • Captain Poppy

    That was no surprised considering their situation, though they had a better opportunity than Rgentina considering they are a world leader in proven oil reserves. Compare them to other world leaders of oil. The real surprise is when will they announce chubby dead?
    FritzS, it's Indec math.

    Feb 09th, 2013 - 01:54 pm - Link - Report abuse 0
  • yankeeboy

    This devaluation is only going to increase inflation. It is like immediately pumping 50% more money into the economy. Maybe they felt bad they lost the top spot last year to Argentina.

    I wonder why South American countries have not learned you can not devalue your way to prosperity. Having more pesos don't necessarily mean you are richer.

    This won't work anyway the black market (real) exchange rate is 20/1. It is unsustainable.

    If Argentina devalues it will have to be above 8 (now) but if you ask me they're going to do something nutty like Chavez and have 3-5 different exchange rates depending on what you are buying/selling.
    Idiots.

    Feb 09th, 2013 - 03:18 pm - Link - Report abuse 0
  • ChrisR

    Yes, it's 46.5%.

    Stupid twats used the final (devalued) number as the denominator.

    I wonder if that is where INDEC goes wrong?

    Feb 09th, 2013 - 05:02 pm - Link - Report abuse 0
  • mastershakejb

    Argentina reminds me of when I was tricked as a little boy on the elementary school playground. An older kid came up to me and offered to sell me a 100 Mexican peso coin for just a couple of US dollars. What a steal! I thought.....then I got home and my parents told me the coin was worthless :/

    Feb 09th, 2013 - 05:19 pm - Link - Report abuse 0
  • LEPRecon

    Maybe Venezula should demand Argentina pay back all the money they borrowed... ;)

    Feb 09th, 2013 - 06:06 pm - Link - Report abuse 0
  • Captain Poppy

    Lep they can but Rgentina already proved they do not pay back what they borrow, or else the would not be in the situation where the world is anti-rgentina

    Feb 09th, 2013 - 07:15 pm - Link - Report abuse 0
  • commonsparrow

    Currency devaluation increases exports. Guess they need the money. It may be a good thing......

    Feb 09th, 2013 - 08:01 pm - Link - Report abuse 0
  • Brit Bob

    All that oil and Chavez and Co still can't get it right - is this the right socialist model for Argentina to follow?

    Will Argentina devalue the Peso again and fleece its people?

    Feb 09th, 2013 - 08:05 pm - Link - Report abuse 0
  • LEPRecon

    @19 - Captain Poppy

    Yes I know they won't pay it back, but then the Argentine government will have to start calling Venezula pirates and vultures, and the rest of South America will know not the lend the Argentines a dime, let alone any significant funds.

    Feb 09th, 2013 - 08:53 pm - Link - Report abuse 0
  • reality check

    I don't know Brazil sounds good for a tenner, don't think they have tapped them up for a while.

    Feb 09th, 2013 - 08:58 pm - Link - Report abuse 0
  • agent999

    truly independent media

    http://www.zerohedge.com/news/2013-02-09/after-freezing-prices-argentina-bans-all-advertising

    Feb 09th, 2013 - 09:25 pm - Link - Report abuse 0
  • Ayayay

    The Big Mac was $16 in Venezuela compared to $4 in the U.S.
    RIP cows

    Feb 09th, 2013 - 09:31 pm - Link - Report abuse 0
  • slattzzz

    @24 Agent999 thats a pretty damning piece

    Feb 09th, 2013 - 10:33 pm - Link - Report abuse 0
  • reality check

    They do not mind, they do not care if their government treats them like utter morons, the more they get shafted, the more they seem to like it.

    Feb 09th, 2013 - 10:39 pm - Link - Report abuse 0
  • The Cestrian

    The Botox Queen is obviously now clueless about what to do with her economy. Imagine banning advertising. Goodness gracious.

    Feb 09th, 2013 - 11:02 pm - Link - Report abuse 0
  • Troy Tempest

    Hoping CLARIN finds a way to generate. enough revenue to fund themselves and keep press freedom alive in Argentina

    Feb 10th, 2013 - 09:00 am - Link - Report abuse 0
  • golfcronie

    The trouble with most Latin countries there is NO credible opposition
    The opposition have to pay lip service to the Government

    Feb 10th, 2013 - 11:04 am - Link - Report abuse 0
  • yankeeboy

    Who wants to bet the 1st thing that goes is SOY for OIL and free OIL to the Bolivarian Socialist Countries. Cuba is doomed.

    Hugo Chavez, president of Venezuela, will die, according to his doctors. These doctors have notified Chavez's family and the Venezuelan government that he has lost his voice and, after a fourth surgery failed to cure his cancer, the recently reelected president will not recover.

    http://www.policymic.com/articles/25326/hugo-chavez-loses-his-voice-venezuelan-president-is-unable-to-recover-from-cancer

    Feb 10th, 2013 - 02:13 pm - Link - Report abuse 0
  • agent999

    Another article on his absence

    http://www.eluniversal.com/nacional-y-politica/130209/president-chavezs-absence-likened-to-surrealist-novel

    Feb 10th, 2013 - 02:40 pm - Link - Report abuse 0
  • mastershakejb

    http://www.huffingtonpost.com/2013/02/05/germany-check-bust-stirs-_0_n_2622017.html
    another funny story regarding Venezuela

    Feb 10th, 2013 - 06:18 pm - Link - Report abuse 0
  • briton

    Some say this
    Some say that,

    But one things for sure,

    He aint saying nothing.

    ??

    Feb 10th, 2013 - 07:38 pm - Link - Report abuse 0
  • ChrisR

    @31 yankeeboy

    According to the article Chubby has lost his voice. Strange that as he gave orders to do the devaluation himself only yesterday!

    The telling phrase is shown below:
    “Symptoms of cancer progression are again clearly evident.”

    I still think he is in the freezer and has been for some time.

    Perhaps they contact 'him' by séance.

    Feb 10th, 2013 - 07:45 pm - Link - Report abuse 0
  • Ayayay

    Youtube video of how Venezuelans are reacting http://www.youtube.com/watch?v=_Kp-kUHdJ00&feature=youtube_gdata_player

    Feb 10th, 2013 - 11:39 pm - Link - Report abuse 0
  • Idlehands

    The alternative therapy that Chavez is currently recieving is probably plastination.

    Feb 11th, 2013 - 01:03 pm - Link - Report abuse 0
  • yankeeboy

    37. Argentina will have the same problems shortly. It is the only country in the world where Cars and Appliances GO UP in value (peso terms) over time!
    Next time I go I am going to bring a suitcase full of sugar and another full of toilet paper and live like a KING for a month.

    Feb 11th, 2013 - 01:18 pm - Link - Report abuse 0
  • ChrisR

    37 Idlehands

    Brilliant!

    I think TMBOA should be next for the treatment.

    Feb 11th, 2013 - 02:58 pm - Link - Report abuse 0
  • Captain Poppy

    Does it really take this long to make a glass crypt? I wish they would get it over and the venezuela that chubbies blood was replaced by formaldehyde.....though he really belongs in an ashtray.

    Feb 11th, 2013 - 04:44 pm - Link - Report abuse 0
  • Brit Bob

    All that oil and they still can't manage their economy and poor old Argentina is following in the footsteps of Chavez and Co. Will Argentina follow and devalue (again) when the poor old Peso is reduced to bum fodder?
    Disaster beckons....

    Feb 11th, 2013 - 06:07 pm - Link - Report abuse 0
  • Ayayay

    @38 haha

    Feb 11th, 2013 - 06:39 pm - Link - Report abuse 0
  • Captain Poppy

    #41 yes all that oil, one of the largest proven reserves in the world and they are still broke.....why? A few reasons:
    1- they want to give outright handouts to the poor rather the help the poor by providing opportunity and subsidies until they are self sufficient.
    2-The corruption is so perversion there that little is left for the poor.
    3-Mis-management of the industry. Rather than hire the best in the industry, as they can well afford it, the place bureacratic croonies in charge of the industry.

    My brother in law has been going there for years. He said it's worst than what is reported and near war zone conditions. The chubby legacy is one of indoctrination of the poor and exploiting the working and middleclass......just like rgentina. In fact. rgentina is so closely resembling venezuela that it is scary, only the rgentines don't get it yet. The dollar clamp was chubbies idea. I hope chubby is lifting his glass of formaldehyde and yelling.....SALUDE!

    Feb 11th, 2013 - 09:19 pm - Link - Report abuse 0
  • agent999

    like this

    http://www.payvand.com/news/13/feb/1049.html

    Feb 12th, 2013 - 12:39 pm - Link - Report abuse 0

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