Central bank acts to save currency

www.news.com.au From correspondents in Caracas, Venezuela January 23, 2003

VENEZUELA'S central bank has suspended its foreign exchange trading for a week in a bid to stop the country's currency further plummeting in the fallout from a 52-day-old strike that has crippled oil exports. Finance Minister Tobias Nobrega today said a new foreign exchange policy would be revealed in five business days.

He said the policy would involve "restrictions" to foreign exchange trade, but did not elaborate.

"The government must adopt urgent measures to prevent our international reserves from further deteriorating," Nobrega said in television address.

The strike had "undoubtedly devastated the economy", he added.