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.
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.
The death toll from more than three weeks of protests in Venezuela rose to 19 as opposition and government supporters held rival marches and the Organization of American States hosted a closed-door meeting on the crisis.
Venezuela’s opposition has scaled back protests that have killed 18 people in the past three weeks as government supporters marked the one-year anniversary of the death of former President Hugo Chavez.
Avianca Holdings SA is limiting sales in Venezuelan bolivars as currency controls leave the airline unable to withdraw cash from the country valued at $300 million, Chief Financial Officer Gerardo Grajales said.
Venezuelan dollar bonds rallied the most in emerging markets after the country moved to allow for more dollar sales and amid optimism there will be a political fix to end protests that have left at least nine people dead.
Venezuelans may find it harder to to fill their tanks with the world’s cheapest gasoline after the government said it might halt delivery in certain areas of the country as protests enter their 11th day tomorrow.