Venezuela rules out devaluation; hints new bond issues

[spanza]

Economy
The Venezuelan government has no plans to devaluate the Venezuelan bolivar or change it monetary policy, said on Wednesday Finance Minister Alí Rodríguez, who confirmed that Hugo Chávez's administration would issue new bonds similar to the USD 5-billion issuance placed last week.

"Reports on likely changes to the foreign exchange policy are mere speculation," said Rodríguez to reporters, and insisted that devaluation of the Venezuelan bolivar has been "ruled out."

"The President (Hugo Chávez) said it already: 'New (bond) issues will be made.' They will be disclosed soon, and the amount is being assessed," said Rodríguez, as quoted by AFP.

Further, the official dismissed claims that the government is pondering new taxes, such as increased VAT rate, which was raised from 9 percent to 12 percent under a previous package of economic measures announced by the government earlier this year.

Rodríguez insisted that the government's inflation goal this year remains unchanged at 26 percent.


http://english.eluniversal.com/2009/10/07/en_eco_esp_venezuela-rules-out_07A2860651.shtml

[Braulio]

1. Inflation goal at 26 Percent

Is like having a fever goal at 99 degrees F.