Read this news report about a planned devaluation of
the bolivar, the currency.of Venezuela.
The president of Venezuela announced that the country
would be devaluating the bolivar for the fifth time in
nine years. The official rate is falling from 4.3 bolivars to
the dollar, to 63. a 32% devaluation. By increasing the
bolivar value of exports of oil to the US and other
nations, the government hopes to alleviate a budget
crisis caused by its increasing reliance on borrowing to
meet spending obligations.
In response to the announcement, the people of
Venezuela lined up today to buy televisions,
electronics, and airline tickets in order to protect
themselves from projected price increases.
Venezuelans started buying items immediately because
of their fear of
rising inflation.
price deflation.
declining inflation.
increased imports.
