CADIVI president Edgar Hernandez Behrens says lifting of controls ruled out

<a href=www.vheadline.com>Venezuela's Electronic News Posted: Friday, May 09, 2003 By: VenAmCham

The Venezuelan Revolution's plans do not include a return to free currency convertibility ... Cadivi president Edgar Hernandez Behrens has told national radio and television that foreign exchange restrictions will not be lifted in the near future. He said that once the current stage is completed, Venezuela will move towards "a comprehensive exchange control system such as many countries have, to make rational and efficient use of foreign exchange."

The official responsible for distributing the Republic's dollars indicated that one of the basic goals is "to stimulate and strengthen national tourism" and give priority to imports of raw materials and inputs that will cause domestic production to grow "over and above the imports of finished products."

Economist Luis Zambrano Sequin says that if PDVSA and foreign reserve statistics are true, there's no reason to limit foreign exchange purchases. He asserts that there is a political component to current policy. As reported in El Universal, the anti-globalization movement, of which the Chavez administration is a participant, firmly believes that free currency exchange is an imposition of "neo-liberalism" and has a deadly effect on developing economies.