Venezuela devalues bolivar amid confusion

By Tom Darin Liskey

 14 February 2013 06:12 GMT

The administration of Venezuelan President Hugo Chavez devalued the country’s bolivar currency by a third last week as the oil-rich but financially stricken nation tries to shore up its economy, writes Tom Darin Liskey.

The move came amid the prolonged absence of the country’s ailing leader, who has been in Cuba recuperating from cancer surgery two months ago.

However, Venezuela appears unsure what its next step is.

Vice President and caretaker leader President Nicolas Maduro downplayed any talk that Caracas would issue an economic package to inject fresh confidence in the financial sector, despite growing uncertainty over Chavez’s physical health and the country’s fiscal health. The move will give heavily­-indebted state-owned oil and gas company PDVSA more breathing room.

Devaluation means PDVSA can funnel more bolivars into the…

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