Venezuela will replace its three legal foreign-exchange rates with a single valuation of 45 per dollar next year, representing a devaluation of as much as 86 percent, according to Bank of America Corp.
Venezuela allowed the bolivar to weaken 88 percent on a new currency market after loosening controls, a move to increase dollar supplies needed to alleviate a record shortage of imports including medicine, food and toilet paper.
Venezuelan bonds rallied as the government said it will ease exchange controls and get as much as $7 billion in financing from China and Russia as it attempts to damp three-week-old protests that are expected to continue.
Robert Mendoza drags a tree trunk to the barricade at the entrance of his neighborhood in San Cristobal as the birthplace of Venezuela’s month-long protest movement braces for an all-out assault by the National Guard.
Venezuela’s government said it will relax exchange controls imposed over the past decade as it attempts to ease shortages of basic goods and damp deadly protests over the rising cost of living. Bonds rallied.
Venezuelan dollar bonds rallied the most in almost eight months after Economy Vice President Rafael Ramirez said last week the country planned to start operating a new currency swap market before the end of the month.