Category: Venezuela

– President Nicolas Maduro’s cash-strapped government unveiled a new currency market Monday that allows Venezuelans to buy and sell dollars legally for the first time since 2010. Opposition leader Gov. Henrique Capriles said the so-called Sicad 2 exchange system is akin to a devaluation and will eat away at the savings of poor families. The government is counting on the new exchange mechanism to alleviate pressure on a black market Venezuelans turn to when they can’t purchase hard currency from the government at the official 6.3 bolivars per dollar rate. Maduro’s government has been increasingly safeguarding its shrinking supply of dollars as oil production declines and deficit spending remains high. That’s led it to fall behind on payments to foreign airlines and carmakers, exacerbating a shortage of imported goods.

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Seeking to confront the deep economic problems that have helped fuel weeks of protests here, Venezuela ’s socialist-inspired government took a step on Monday toward easing strict currency controls and opened what it says will be a free market for the sale of dollars to Venezuelans. The new exchange rate mechanism is intended to reduce the black market price of dollars, which had soared in recent months. Yet the impact of the measure, which is similar to a system that was shut down in 2010, depends on how much money the government allows to change hands in the new market and how freely it allows the market to operate. Alejandro Grisanti, an economist for Barclays, said the change “makes the exchange rate system more flexible,” adding, “And in that sense it’s very positive for Venezuela.” The new system will operate in tandem with a base exchange […]

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Oilfield services provider Weatherford International Ltd said on Monday it was reducing operations in Venezuela and expects its Russian business to grow this year. The Swiss-headquartered company, which competes with Schlumberger and Halliburton, said the "serious liquidity situation in Venezuela" is causing it to pare back services it provides inside the OPEC country, Chief Executive Bernard Duroc-Danner said at the Howard Weil conference in New Orleans on Monday. Weatherford provides drilling and exploration services to Venezuela’s national oil company Petroleos de Venezuela SA , but Venezuela’s currency devaluation and economic instability have prompted payment delays, according to Weatherford’s annual filing with the U.S. Security and Exchange Commission. In Russia, Weatherford expects a "very constructive year," Duroc-Danner told the conference. He did not mention the ongoing tension between Russia and Ukraine over Crimea and how it could affect his business. Last year, revenue in […]

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Venezuela’s president said on Friday that street protests for the past month have caused at least $10 billion in damage, accusing hardline foes of carrying out terrorist acts to sabotage public assets. President Nicolas Maduro did not say how the government arrived at that figure from the clashes between demonstrators barricading roads, pro-government radicals and security forces that have killed at least 31 people. "The minority who want a coup have done so much damage to the country … they burnt a public university where hundreds of young people studied," he said in a nationally televised speech. "This isn’t protest. It’s vandalism. It’s terrorism." Maduro was referring to a military college affiliated with the Venezuelan armed forces that authorities say was torched by demonstrators in the western city of San Cristobal, near the border with Colombia. San Cristobal has been harder hit by the violence than […]

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The authorities have jailed the mayors of two cities that have experienced some of the most intense unrest in a wave of protests that has shaken the country in recent weeks. The arrests came as the National Assembly called for a criminal investigation of a prominent opposition lawmaker on charges related to the demonstrations. The intelligence police on Wednesday arrested Daniel Ceballos, the mayor of San Cristóbal, a city near the western border with Colombia where the protests began in early February. Many parts of San Cristóbal have been virtually shut down for weeks by demonstrators manning barricades, and clashes between residents and security forces are common. Mr. Ceballos was arrested during a trip to Caracas, the capital. The justice minister, Miguel Rodríguez, said that the mayor had been taken into custody on a judicial order after citizens filed court papers accusing him of failing to […]

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The government on Monday deployed hundreds of soldiers in a part of Caracas where weeks of often violent protests have taken place, and a top official boasted that the area had been “liberated.” The operation centered on a public square, Plaza Francia, in the city’s well-off Altamira district, where virtually every night up to hundreds of young protesters gathered to engage in battles with the police and National Guard troops, building barricades to block streets and throwing rocks and gas bombs at security forces, who responded with tear gas and plastic buckshot. The deployment extended into other nearby neighborhoods where residents had been active in the protests and had barricaded many streets. Soldiers, some armed with assault weapons, were stationed in the plaza and on many of the major streets in the area, which has long been an opposition stronghold. Municipal workers removed barricades and cleaned up the trash […]

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A Venezuela National Guard captain died on Monday after being shot in the head during a demonstration, the military said, the 29th fatality in six weeks of clashes between protesters and security forces. General Padrino Lopez, head of the armed forces’ strategic operational command, said the captain was shot late on Sunday at a street barricade set up by demonstrators in the central city of Maracay, in Aragua state. "He was another victim of terrorist violence," Lopez said on Twitter, calling for an end to the confrontations. "Our armed forces don’t repress peaceful protests, they protect them." Since early February, students and hardline opposition leaders have been calling supporters onto the streets to protest against President Nicolas Maduro and his socialist government. The demonstrators are demanding political change and an end to high inflation, shortages of basic foods and one of the worst rates of violent […]

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Air Canada says it will continue to monitor the situation "with the objective of resuming operations" Air Canada has suspended flights to and from Venezuela, citing concerns over security. The airline said it would consider resuming operations once the situation in Venezuela had stabilised. It operated three return flights between Toronto and Caracas per week. Twenty-nine people – from both sides of the political divide – have been killed in six weeks of protests against high inflation, crime and the shortage of many staples in Venezuela. "Due to ongoing civil unrest in Venezuela, Air Canada can no longer ensure the safety of its operation and has suspended flights to Caracas until further notice," says the Canadian airline in a statement. It says customers who have not begun their travel "may obtain refunds". Others may be rebooked on other airlines. Retaliation Several international airlines have reduced operations in recent weeks […]

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Air Canada says it will continue to monitor the situation "with the objective of resuming operations" Air Canada has suspended flights to and from Venezuela, citing concerns over security. The airline said it would consider resuming operations once the situation in Venezuela had stabilised. It operated three return flights between Toronto and Caracas per week. Twenty-nine people – from both sides of the political divide – have been killed in six weeks of protests against high inflation, crime and the shortage of many staples in Venezuela. "Due to ongoing civil unrest in Venezuela, Air Canada can no longer ensure the safety of its operation and has suspended flights to Caracas until further notice," says the Canadian airline in a statement. It says customers who have not begun their travel "may obtain refunds". Others may be rebooked on other airlines. Retaliation Several international airlines have reduced operations in recent weeks […]

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Venezuela’s central bank president acknowledged on Sunday that his country was undergoing an "economic crisis" but said measures like a new market-based currency mechanism would help bring rapid improvements. The announcement came amid continuing street protests against the government of President Nicolas Maduro. Unrest has been fueled by a 56 percent annual inflation rate and regular shortages of consumer goods. Late Saturday, Maduro warned protesters in Caracas to clear a square they have made their stronghold , or face eviction by security forces. Plaza Altamira, in upscale east Caracas, has been a focus of anti-government protests and violence during six weeks of unrest around Venezuela that has killed 28 people. "I’m giving the Chuckys, the killers, just a few hours," Maduro said, using the name of a murderous child-doll in a horror film to describe anti-government demonstrators who have made the normally genteel 1940s square a base of operations. "If they don’t […]

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