Chavez Announces Currency Controls

www.voanews.com VOA News 27 Jan 2003, 02:25 UTC

Venezuelan President Hugo Chavez says he will impose currency controls as nervous Venezuelans scramble for U.S. dollars.

Over the last eight weeks, the value of the Venezuelan bolivar has plunged by 30 percent. The sharp drop has coincided with a long-running opposition general strike aimed at driving President Chavez from power.

Mr. Chavez did not say on Sunday when the currency controls would take effect. But a government suspension of currency trading ends Wednesday.

Also Sunday, President Chavez announced unspecified price controls he said will protect the poor from inflation. And Mr. Chavez said he is considering a tax on foreign currency trading. The opposition says government policies are ruining the Venezuelan economy.

The strike has disrupted oil production and caused a severe shortage of many goods. Economists say nearly two-billion dollars in capital has been sent out of the country since the strike started.

Mr. Chavez said at an economic conference in Brazil Sunday that despite the strike, Venezuelan oil production now exceeds one million barrels a day and is growing.

Mr. Chavez and strike leaders have given a positive response to plan by former U.S. president Jimmy Carter to end Venezuela's political crisis. The Carter plan would amend the Venezuelan constitution and shorten the president's term in office, leading to early elections.