CARACAS, Friday January 15, 2010 | Update
59 percent of imported items will be bought at VEB 4.30 per dollar

Ricardo Sanguino, the president of the Finance Committee, National Assembly (AN), says that there are no reasons to raise prices before April

The devaluation will increase the price of imported goods whereas inflation forecasts are between 35 percent and 40 percent in 2010 (File photo)
Friday January 15, 2010  01:24 PM

The Foreign Exchange Administration Commission (Cadivi) determined that 59 percent out of a total of 6,394 items that can be imported will receive foreign currency at an exchange rate of VEB 4.30 per US dollar whereas 41 percent of the items will receive foreign currency at an exchange rate of 2.60 per dollar.

The products to be imported at the lowest exchange rate belong to sensitive areas such as food, medicines, personal care items, inputs and machinery.

As a result of the decline in oil prices in 2009, Cadivi cut by 50 percent the authorizations of US dollars and a significant proportion of imports were bought with the parallel exchange rate.

According to a report prepared by research firm Ecoanalítica, including the de facto devaluation in 2009, the private sector imports were made at an average exchange rate of VEB 3.36 per dollar.

According to the report, when the devaluation announced on January 08 is taken into consideration, the exchange rate in 2010 is expected to average VEB 4.05 per US dollar.

"Based on the above figures, the average devaluation faced by the private sector is 20.5 percent, substantially lower than estimates made by economic players," the report says.

Meanwhile, Ricardo Sanguino, the president of the Finance Committee, National Assembly (AN), told state-run news agency ABN that price adjustments should be made from April.

Growing inflation
After weighing the impact of devaluation, the effect of the injection of Venezuelan bolivars to public spending and negative expectations related to Venezuelan economy, investment banks and financial experts said that the inflation rate will fluctuate between 35 percent and 40 percent.

As a result, Venezuela's inflation will continue being the highest in Latin America.

Translated by Gerardo Cárdenas

Living with HIV/AIDS (II)

At first she agreed that I use her real name, that she had no problems with that at all. After all, living with HIV had driven her to help others – as a workshop facilitator giving talks and conducting seminars, or as a volunteer for local AIDS Service Organizations like Acción Solidaria (Solidary Action) and Mujeres Unidas por la Salud (Women United for Health, or Musa), a support group network for HIV-positive women. But when we were well into the interview, the realization that she might lose her private health insurance coverage made her change her mind. Estampas
Alianzas Estampas