Venezuela to devalue bolívar

Venezuela has announced it is devaluing its currency in the hope of boosting economic growth.

Starting Wednesday, the fixed exchange rate will go from 4.30 bolivars to the dollar to 6.30.

The Venezuelan government strictly controls the currency exchange to limit available dollars and avoid currency flight. But the shortage of dollars has created a thriving black market currency exchange. It has also boosted the price of imports, leading to shortages of some basic goods.

The devalued bolivar is expected to make Venezuelan exports cheaper on world markets.

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