First we have Reuters stoking the rumours and heresay that shot the Bolivar Fuerte (VEF) up to as much as 6.6o to the dollar yesterday before it closed at 6.10.
Reuters, March 19th 5:29pm EST: "Chavez promises to this week unveil a set of economic measures that are the government's response to lower oil income. The measures could include moving the official bolivar peg........"
Bloomberg, March 21st, 7:22pm EST: "Venezuelan President Hugo Chavez said he won’t devalue the country’s currency."
Reuters, March 21st, 7:49pm EST: "Some analysts believe Chavez is preparing a devaluation of the fixed-rate bolivar currency, although the president said in February he would not devalue in the short term."
As for the seemingly chimeric deval, it's only people that follow the MSM like sheep that thought Hugo would actually drop the currency this time around, cos for the smart folk (such as BBO, who called it perfectly) the whole thing was just a great way of making money by selling your dollars at over VEF6 this week, buying them back next week and pocketing the difference. As mentioned before on IKN, you can expect a VEF deval in the second half of this year if and only if crude oil doesn't pick up. My tipping point price is $65/bbl, but that might change. BTW, don't ask me for a forecast on whether that price will happen because I'm a total zero at picking oil. Vamos a verrrr.......