Chavez to tighten currency supply

www.dailynews.com209541138579,00.html By Associated Press

CARACAS, Venezuela -- Venezuelans awaited details of new currency controls, while protesters continued to press for the ouster of President Hugo Chavez in a nearly two-month-long strike that has severely hampered the economy, although oil production was slowly increasing.

Chavez last week suspended foreign currency dealings through Tuesday and said he would announce new currency controls to halt the rush of nervous Venezuelans trading in their currency, the bolivar, for dollars.

Details about the new controls and even when they will be announced have not been revealed, but there are fears that the government will largely limit the availability of dollars to Chavez supporters while cutting off those taking part in the strike, which began Dec. 2.

Production and Commerce Minister Ramon Rosales was quoted in the El Nacional newspaper saying that importers and exporters who do not back the crippling strike will get priority for access to dollars.

That would drive many businessmen to a new but flourishing black market for the American currency, sending already-rising prices even higher.

Rosales also said dollars will be guaranteed for food and raw materials for agriculture, health and education.

Meanwhile, a demonstration on a central Caracas highway continued Sunday morning after thousands spent the night on the asphalt to protest a Supreme Court decision indefinitely suspending a Feb. 2 referendum to ask Venezuelans whether Chavez should resign.