BCV director insists forex controls are essential

www.vheadline.com Posted: Friday, February 07, 2003 - 5:22:52 AM By: Robert Rudnicki

According to Central Bank of Venezuela (BCV) director Domingo Maza Zavala, the foreign exchange controls implemented by the government yesterday are essential for control of the economy, particularly in such troubled times.

"These exchange rate controls, in these extraordinary circumstances that Venezuela is living through are absolutely necessary, because we are in a real emergency situation."

The BCV director acknowledged the strong opposition to the controls from Venezuela's business sector, "all economic controls, whether of exchange rates, prices or commerce, always have their opposition because people are against these kinds of controls."

The controls were announced by President Hugo Chavez Frias on Wednesday night and will see the bolivar pegged to the US dollar at Bs.1,600.00 / Bs.1,596.00 for the time being, but should it be necessary these rates will then be altered.