Venezuela Delays Dollar Supply Boost Amid New Protests

Source: San Francisco Chronicle

March 10 (Bloomberg) -- Venezuela’s government failed to publish the details of a new foreign exchange market this morning, making it unlikely that today’s auction will go ahead as planned.

There was no mention of the rules in the Official Gazette, where they must appear before the system can be implemented. Economy Vice President Rafael Ramirez said March 7 that the so- called Sicad 2 market would begin today and that the government wouldn’t impose any restrictions on trading. Ramirez also announced $5 billion in financing from China and a potential $2 billion from Russia.

“Sicad 2 will not operate today, perhaps it will be tomorrow,” Jose Guerra, economics professor at the Central University of Venezuela, said by telephone from Caracas. “The delay shows how messy the internal functioning of the government is.”

he government is trying to boost the supply of dollars to end shortages of basic goods and bring down the world’s fastest inflation rate. President Nicolas Maduro also called on opposition leaders this weekend to hold talks to end the wave of demonstrations that have led to daily clashes with police in Caracas and other cities. The opposition, which has rejected the offer of talks before, plans another march today. Their leaders say any talks should be brokered by a third party, such as the Catholic Church.



Read more: http://www.sfgate.com/business/bloomberg/article/Venezuela-Delays-Dollar-Supply-Boost-Amid-New-5303470.php