Chavez Devalues Venezuela's Currency -- Wall Street JournalCARACAS – President Hugo Chavez, harried by recession and declining popularity, announced a major currency devaluation late Friday to shore up government finances and stimulate economic growth before key elections this year.
The move cuts Mr. Chavez's two-year-old "strong bolivar" currency by half – to 4.3 per dollar from 2.15 per dollar – for most imports and transactions. The central bank will also subsidize a stronger 2.6-per-dollar rate for imports of food, medicine and other essential items, Mr. Chavez said.
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Update: Devaluation ups stakes in Venezuela election year -- Reuters
My Comment: When you start playing with people's money .... there is going to be blow back. In Venezuela's case .... I doubt that it is going to be pretty.