Venezuelan currency claws back ground

news.bbc.co.uk Some banks have remained open despite the strike Friday, 10 January, 2003, 19:36 GMT

Venezuela's currency has recovered some lost ground, despite a second day of action by bank workers in support of the country's general strike.

The bolivar gained 5.3% against the US dollar to stand at 1,511 to US$1 on Friday, the country's central bank said.

The increase saw the bolivar regain much of the ground lost earlier this week when bank staff announced their strike in support of efforts to unseat Venezuela's president, Hugo Chavez.

The strike call prompted a rush for dollars by individuals and firms fearing that the government might, while banks were closed by industrial action, order a devaluation of the bolivar.

A devaluation would help the government balance budgets hit by a reduction, caused by the general strike, in tax and oil revenues.

But while leaders of finance unions proclaimed the success of the bank strike, many branches have remained open.

Strike 'to harden'

Some 80% of bank workers participated in the bank strike on Thursday, the union Fetrabanca said.

And Fetrabanca president Jose Elias Torres predicted that the strike would harden as non-striking workers followed the example of protesting colleagues.

"Some workers who went to work [on Thursday] because of a certain fear have committed to observing the strike [on Friday]," he said.

Many stores closed after shoppers were left unable to pay by credit or debit cards, the National Association of Supermarkets said.

But some observers reported that many Venezuelans were tiring of action, with an increase reported by agency Associated Press in levels of traffic and street commerce.

And the government has said that oil output, reduced by industrial action to 15% of pre-strike levels, will return to normal levels next month, a claim questioned by protesters.