The national agent chief executive indicated that they will take part in the market permutes to avoid the speculative handling with currencies. Photo courtesy Presidential Press

The first level - that represents a 20.9% adjustment - will apply for the sectors of foods, health, science and technology, machinery and equipment and everything what has to do with imports in the public sector, diplomatic remittances and organisms.

The second level, that the President called oil dollar, was established in 4,30 bolivars by dollar, a difference of 100% with respect to the type of change of 2.15 bolivars by dollar; and it will serve the automotive industry, commerce, telecommunications, electric home appliances, services, constructions, tobacco and drinks, among others. From already many they have baptized east decree like “Red Friday” in reference to the similarity with remembered Black Friday (8 of February of 1983), during the period of Luis Herrera Campins and Recadi.

√ “a vehicle that was engaged in to 2.15 is going to bring now to 4.30, the double (…) a vehicle that cost 100 million will duplicate”. Caesar Aristimuño, director of the Aristimuño company, Herrera & Asociados.

√ “This will have a strong inflationary effect in all the expenses, because things will increase to 21% and another 100%”. Jose War, director of the School of Economy of the UCV.

√ minister of Economy and Finanzas, Alí Rodriguez Araque, indicated that the impact in the inflation will be of not more than 5 percent.

√ the analyst Takings Partners maintained that the measurement arrives very behind schedule, because the productive system extremely is aggravated.

√ “Devaluation without monetary fiscal measures and is inflation, are no doubts. Reduction of wages is what comes”, indicated the economist Orlando Ochoa, through Twitter.

Maria Ramirez Hair
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The national Executive last night announced the devaluation of the currency and the restoration of a type of multiple change, that in agreement with the consulted economic analysts will impel the inflationary spiral in all the scopes, in short time.

The type of change restored from 2003 in Bs.F. 2,15 by dollar were devaluated, in a first level, to 2.60 bolivars by dollar, a rise of 20.9%. This level will be used for a set of sectors of the economy, between which they emphasize: foods, health, science and technology, machinery and equipment (scholastic bookstore, equipment), and everything what has to do with imports in the public sector, remittances to students in the outside, consulates and embassies, and rejoiced and pensioned.

The second level, that the President called oil dollar, was established in 4,30 bolivars by dollar, a difference of 100% with respect to the type of change of 2.15 bolivars by dollar.

The sectors automotive, commerce, telecommunications, chemistry, metallurgical, computer science, electric home appliances, graph, electrical, textile, services, constructions, tobacco and drinks, among others, will correspond to this scope.

“We have decided to take the rate of change of 2.15 to 2.60 bolivars by dollar as of this moment (...) but there will be a second level that will be located in 4,30 bolivars by dollar”, Chávez declared from the Palace of Miraflores.

In which he was described like another “black Friday” for the national economy, the President announced that they will take part in the market permutes, as “a third level” to avoid the speculative handling with currencies. “This sandal those imports with own resources”, said, when indicating that this measurement looks for “I reimpel of the Venezuelan economy”.

The national agent chief executive instructed the ministers to be kind to the doubts of the population, and indicated that the process of restoration of the exchange system “will become of scientific and planned way. The Venezuelans know who all this is going to favor the national economy, and an economy oriented to the social thing. This goes to the benefit of all the colectivity”, maintained.

More ahead, it admitted with lightness that certainly “the imports will get dearer”.

Greater impoverishment
The economist Caesar Aristimuño, director of the Aristimuño company, Herrera & Asociados declared to Mail of the Caroní that “this devaluation will much more make the handling difficult of the personal finances, because the inflation will go away to very high levels and will be major impoverishment”.

“The impact of the devaluation is going away to feel in the population, because absolutely everything is going to increase”, it indicated.

Specialist, that maintained that the devaluation was an imminent forecast, indicated that “the foods are going to increase and a vehicle that was engaged in to 2.15 is going to bring now to 4.30, the double (…) a vehicle that cost 100 million will duplicate”, explained.

It aimed that they lack specifications about the restoration of this type of change and, in that sense, “we will see how institutions as Cadivi with this adjustment will react”.

Measurement of fiscal order
On the other hand, the economist Jose War, director of the School of Economy of the Central University of Venezuela (UCV), declared to this means that this is a devaluativa measurement of fiscal order “that will provide with fiscal resources the Government to finance its expenses”.

“This will have a strong inflationary effect in all the expenses, because things will increase to 21% and another 100%”, it said, when indicating that the increase of the goods and services will feel like between end of January and principles of February.

“The experience is clear. Devaluation without monetary fiscal measures and is inflation, are no doubts. Reduction of wages is what comes”, indicated Orlando Ochoa, through the social network Twitter.

Through official notice, analyst economic Takings Partners clarified that it could to say that “measures announced are positive, because for a long time came saying that the Executive had to sincerar the economy, to devaluate the bolivar at least to 3 bolivars (…) However, the presidential measurement arrives behind schedule and is damages to the national production, the private sector and the population that will be difficult to resolve”.

Maintained negation
Recently, the National Confederation of Associations of Farming Producers (Fedeagro) needed that 70% of the agricultural headings that are consumed in the country they are mattered, so that against this background of devaluation it hopes that the foods of import and the rest of the sectors that will be protected under the first level of 2.60 bolivars by dollar undergo an increase of 20.9%.

The Executive very insistently denied the devaluation of the currency during the 2009. Companies as Ecoanalítica maintained in diverse opportunities that the Executive had to not less than fit to the rise the type of official exchange rate to Bs.F. 5 by dollar, because on the one hand, it would allow to improve the numbers of Pdvsa and, on the other hand, to generate resources extraordinary to alleviate the fiscal accounts in an electoral year like 2010.