Venezuelan Bolivar

"All six Latin American currencies tracked by Bloomberg weakened today, with the Brazilian real leading the decline."

"Venezuela's bolivar sank 6.3 percent to 4.8 per dollar in black market trading today as oil tumbled to a seven-month low amid concern the global economic slowdown will deepen, traders said."

The bolivar has plunged 30 percent from 3.38 a month ago as oil dropped 35 percent from a record high of $147.27 a barrel on July 11. Oil accounts for about 90 percent of Venezuela's exports. Crude for October delivery fell as much as 7 percent today to $94.13 a barrel on the New York Mercantile Exchange.

Venezuela pegs the bolivar at an official exchange rate of 2.15 per dollar under restrictions imposed in 2003. Venezuelans turn to the informal market when they can't get government approval to buy dollars at the official rate.

"Venezuelan demand for foreign currency is rising as economic growth leads to increasing imports, Manuel Barroso, president of the government's Foreign Exchange Administration Commission, said today. The commission, which provides currency at the official exchange rate, plans to sell $4.8 billion in foreign exchange this month, he said."

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