www.vidaenelvalle.com By MONTE HAYES The Associated Press (Published Wednesday, January, 22, 2003 5:30AM)

QUITO, Ecuador -- Three years after he led a coup to oust an unpopular president, a former army colonel took the oath of office last Wednesday as Ecuador's new leader, vowing to fight the "corrupt oligarchy" he says controls the nation.

As Lucio Gutiérrez, 45, strapped on the red, yellow and blue presidential sash, his followers in Congress chanted "Lucio, Presidente!"

"Lucio Gutiérrez will not govern for the left nor for the right. He will govern for Ecuadoreans unhindered by the ideologies of the past," he said to loud applause. "We will change Ecuador or we will die trying."

Gutierrez won an election runoff in November, promising to fight corruption -- a pledge that could bring him into confrontation with Ecuador's political elite. He said in an interview published last Wednesday that he would call giant street protests if the political establishment tries to block his reforms.

Ecuador has been ranked in international studies as one of the most corrupt countries in the world.

Seven Latin American presidents were among the guests at the inauguration, including the region's top leftist leaders, Cuba's Fidel Castro, Brazil's Luiz Inacio Lula da Silva and Venezuela's Hugo Chávez.

Gutiérrez has frequently expressed his admiration for Chávez, raising fears among some Ecuadoreans that he may seek to emulate Chavez, whose leftist rhetoric has divided Venezuela and produced growing political instability.

Gutiérrez, often referred to in the streets simply as "The Colonel," thrust himself into the national spotlight in January 2000, when he led a group of disgruntled junior army officers and 5,000 Indian protesters in an uprising that drove the widely repudiated Jamil Mahuad from power in the midst of the country's worst economic crisis in decades.

Gutiérrez was imprisoned for six months after the coup and expelled from the army.

In his address last Wednesday, he said he would take strong steps against "the corrupt oligarchy that has robbed our money, our dreams and the right of Ecuadoreans to have dignified lives."

"If sharing and showing solidarity, if fighting corruption, social injustice and impunity, means belonging to the left, then I am a leftist," he said, drawing cheers.

But he added: "If generating wealth and promoting production means belonging to the right, then I am a rightist." That remark drew fewer cheers.

Gutiérrez has labeled Ecuador's traditional parties and their leaders as corrupt and said all of the country's former presidents should be in prison for their responsibility in "the national disaster" -- although he later apologized for his remarks.

In a fiery address night before the Supreme Electoral Tribunal, Gutiérrez said he would found a new Ecuador based on "ethical values, moral values ... with social justice" for the poor, including Ecuador's large Indian population.

In his campaign Gutiérrez pledged to reduce the number of lawmakers, eliminate the influence of political parties over the court system and extradite corrupt bankers who made off with people's money when the banking system collapsed in 1999. He plans to call popular referendums to achieve his reforms.

"At some moment the country must change or if it doesn't I will convoke marches," he said. "We will not permit the mafia to destroy what we want to build."

www.forbes.com Reuters, 01.22.03, 9:21 AM ET By Patrick Markey

CARACAS, Venezuela (Reuters) - Venezuela's central bank said Wednesday it was closing the foreign exchange market for five trading days as the government moved to stem capital flight during a crippling seven-week-old opposition strike against President Hugo Chavez.

Venezuela's international reserves have fallen and the local bolivar currency has tumbled 28.5 percent since the strike against Chavez began Dec. 2 in the world's fifth largest petroleum exporter.

"Foreign exchange trading is suspended in the country for five market days," Finance Minister Tobias Nobrega and central bank President Diego Castellanos said in a statement.

The central bank said that during the five-day closure the government would maintain the necessary operations to make public external debt payments.

A government source told Reuters late Tuesday that the cabinet planned to temporarily shut down the exchange market as it studied currency restrictions to stem the sharp decline of the bolivar against the dollar.

But the source, who asked not to be identified, said the government was still not clear on what measures it would introduce. The government said Wednesday that it would establish temporary currency exchange and transfer restrictions, but did not give further details.

"The Finance Ministry is authorized to establish with the central bank temporary measures setting limits and restrictions on the convertibility of the national currency and the transfer of funds abroad," said a government decree published in the official gazette.

The source said Tuesday that the government was not considering a devaluation of the bolivar for the moment.

ECONOMIC "TERRORISTS" The opposition strike, aimed at pressuring leftist former paratrooper Chavez to resign and call elections, has battered Venezuela's vital oil exports, which account for about half of the government's revenues. The oil-reliant economy had already contracted sharply amid growing political conflict.

Opposition leaders say that rather than deliver on his promises to ease poverty, Chavez has wielded power like a dictator and driven Venezuela toward economic ruin.

Chavez, who was elected in 1998 and survived a coup in April, has branded his foes as "terrorists" who are trying to topple his government in an economic coup. He has refused to step down and vows to defeat the strike.

Trade and Production Minister Ramon Rosales said the exchange market measure was introduced to halt what he called "the coup-mongers' attack against our international reserves."

"The aim of this measure is to preserve our reserves which are the only guarantee of Venezuela's recovery after this oil sabotage," Rosales told Reuters.

Venezuela's international reserves have fallen to $11.05 billion, a drop of 7.5 percent so far this year. The government also holds $2.85 billion in its FIEM rainy-day savings fund.

The central bank had been burning through about $70 million to $80 million a day to cover demand in the exchange market, traders say. Officials say that figure has at times surpassed $100 million a day.

The central bank reference rate for the bolivar closed Tuesday down 5.1 percent at 1,849.50/1,853 bolivars to the dollar amid nervous demand for the U.S. currency.

Rattled by political uncertainty, the bolivar has lost more than 24 percent of its value this year alone. Traders had predicted the Venezuelan currency could fall below 2,000 bolivars to the dollar this week as the strike grinds on.

Several ministers and central bank officials had repeatedly denied the government planned to introduce currency exchange controls, citing Venezuela's solid international reserves. (Reporting by Patrick Markey, additional reporting by Ana Isabel Martinez and Silene Ramirez; editing by Phil Berlowitz; Reuters Messaging: pat.markey.reuters.com@reuters.net; 58-212-277-2656; email: pat.markey@reuters.com) (Xtra clients: Click on topnews.session.rservices.com to see Top News pages in multimedia Web format. If you cannot access the pages, ask your IT department to check your Internet firewall settings. For a technical advisory, click on .)

abc.net.au Thu, Jan 23 2003 8:06 AM AEDT

Venezuela's Government has suspended trade in foreign currency for five days, according to a joint statement from the Finance Ministry and the Central Bank of Venezuela.

A statement, signed by Finance Minister Tobias Nobrega and Central Bank President Diego Luis Castellanos, and read on state television, says "trade in foreign currency in the country is suspended for five banking days".

The statement says during that period operations related to the payment of public foreign debt would continue.

It also says after the five days, the Central Bank and Finance Ministry would set currency standards.

Venezuela's currency has depreciated more than 30 per cent since the start of a national strike on December 2.

It has plummeted almost 60 per cent since the bolivar was allowed to float in February 2002.

US dollars were worth 1,929.90 bolivars early Wednesday prior to the suspension of trade, down 1.5 per cent from late Tuesday.

Traders say the suspension is motivated by the high demand for cash amid nervousness over the crisis and fears that currency controls would be imposed.

A 52-day old strike aimed at forcing President Hugo Chavez from power has hobbled Venezuela's economy, especially its crucial oil sector.

sg.biz.yahoo.com Wednesday January 22, 4:04 PM

TOKYO (Dow Jones)--The global crude oil market is expected to stabilize after February with supply and demand likely balanced, but only if there is no attack on Iraq, the head of Japan's oil industry body said Wednesday.

"OPEC's decision to increase production (from Feb. 1) will likely cover a supply shortfall" caused by a strike in Venezuela, and this will help balance the oil market after next month, said Keiichiro Okabe, chairman of the Petroleum Association of Japan.

"But that would be on the condition that there will be no attack on Iraq," said Okabe, who is also president and chairman of Cosmo Oil Co. (J.COO or 5007).

Some industry observers remain cautious. Abdullah bin Hamad Al-Attiyah, president of the Organization of Petroleum Exporting Countries, or OPEC, said Tuesday the group might find it difficult to compensate for the supply shortage in the U.S. market because many U.S. refineries are geared specifically to process Venezuelan crude.

On the New York Mercantile Exchange, February crude futures Tuesday jumped as high as $35.20 a barrel before expiring at $34.61/bbl, a gain of 70 cents. The new front month March contract ended with a gain of only 23 cents at $33.19/bbl.

(MORE) Dow Jones Newswires

01-22-03 0304ET

www.ohio.com Posted on Wed, Jan. 22, 2003 From Beacon Journal wire services

CARACAS, VENEZUELA - Fearing their workers are in danger from Venezuela's political violence, many multinational companies are sending them home or suspending operations, or both.

Microsoft Corp. closed two Venezuela offices Monday, saying it could not guarantee employees' safety. The company employs about 85 in Caracas and six in the western city of Maracaibo.

Since Venezuela's opposition called a strike Dec. 2 aimed at ousting President Hugo Chavez, oil companies such as ConocoPhillips and France's TotalFinaElf have withdrawn nonessential expatriate staff. Some fast-food franchises such as McDonald's, Burger King, Wendy's and Subway have closed.

The number of companies and workers involved isn't known, but departures accelerated after the U.S. Embassy and other missions issued strong safety warnings in December. The U.S. Embassy sent off its nonessential staff and closed its commercial attache's office.

The strike has reduced the nation's oil output and contributed to a surge in global oil prices to two-year highs. Crude oil for February delivery rose 70 cents, or 2.1 percent, to $34.61 a barrel on the New York Mercantile Exchange, the highest closing price since Nov. 29, 2000. Prices rose as high as $35.20 a barrel in the last 15 minutes of trading.

Venezuela was producing about 3 million barrels a day before the strike began Dec. 2; the Lake Maracaibo port produced 1.7 million barrels of that. Current production nationwide is about 1 million barrels a day, according to the government, or about 650,000 barrels a day, according to strikers.

Dozens of Venezuelans have been killed in political violence since an April coup briefly toppled Chavez. Six have been killed since the strike began.

None of the companies has announced it is withdrawing for good. Venezuela is the world's fifth-largest exporter of crude, and it has accumulated $20 billion in investment in its natural gas, oil and oil-related-services sector in the past 10 years.

I think (oil companies) are assessing the situation and trying to stay as invisible as possible,'' said Larry Goldstein, president of the New York-based Petroleum Research Foundation. Politically, they don't want to be seen as choosing sides right now. Some have substantial investments they have to protect.''

Many local workers are striking, and others can't get to work because of gasoline shortages. Political protests occur daily and often end in violence. Financial transactions can be hard to complete because Venezuelan banks are operating only three hours a day.

Ricardo Tinoco, a spokesman for Ford Motor Co. in Venezuela, said operations have been suspended since early December. He said all employees were told to come back next week. ``But in light of the current situation, the lack of fuel and the fact that many of our suppliers are on strike, we don't see how we'll be able to start operations next week as planned,'' he said.

Ford has a large assembly plant in Valencia, 70 miles west of Caracas.

On Friday, Venezuela's military raided a Coca-Cola affiliate bottler and another bottler belonging to Venezuela's largest food and drinks producer, Empresas Polar. Both companies denied hoarding goods.

The Venezuelan American Chamber of Commerce condemned the raids as ``a grave rupture of the state of law.'' It warned more than 1,000 affiliates that the army could commit more abuses and urged the affiliates to report violations.