CARACAS (Dow Jones)--Venezuela's bolivar was gaining against the dollar Thursday, its first upward move this month, as investors await new government rules on currency trading that could slow down the pace of trading in the free-floating market.
The bolivar was trading at about VEB8.1 for $1, traders said, after it had weakened to a record VEB8.2 for $1 on Wednesday.
Venezuela's currency has weakened more than 25% against the greenback this year, and President Hugo Chavez blames speculators for the tumble, and has promised to "smash" them.
The legislature, which is majority-controlled by Chavez's socialist party, could pass a new law as early as Thursday afternoon that would give the central bank authority to decide who can and who can't participate in the free-floating market.
In addition to the free-floating rate, Venezuela's government has a pair of official, pegged rate, one set at VEB4.3 per $1 and another at VEB2.6 per $1, which is designed for imports of vital goods such as medicine.
But getting government approval to receive those official rates is often impossible for people and companies, so at least half of all foreign currency trading takes place in the legally murky, free-floating market.
If lawmakers give the central bank oversight of the free-floating market, analysts say this may slow down the trading process and force investors to create yet another black market, where a fourth exchange rate would be created.

-By Dan Molinski, Dow Jones Newswires