Economics &
Finance
Currency reserves fall to five-year
low before vote
Venezuela’s international reserves fell to their lowest
level in more than five years, according to figures released today by the
central bank. The central bank said reserves fell U$D 300 million between Sept.
13 and Sept. 14 to U$D 25.2 billion, the lowest since July 30, 2007.
Venezuela’s reserves have fallen from U$D 42.5 billion in January 2009 as
President Hugo Chavez orders the central bank to help fund social spending with
the nation’s reserves. Chavez is boosting spending this year as he seeks to win
a third term in next month’s presidential election. (Bloomberg, 09-17-2012; http://www.bloomberg.com/news/2012-09-17/venezuela-s-currency-reserves-fall-to-five-year-low-before-vote.html)
U$D $11,1 billion transferred from
PDVSA to FONDEN and the Central Bank
Petróleos de Venezuela (PDVSA) and Venezuela's Central
Bank has raised cash available to the National Development Fund (FONDEN), which
is the government's instrument to fund projects and welfare. According to
official data from the oil industry and the Central Bank, FONDEN received U$D
11.1 billion in deposits during the first semester of this year. By the end of
June PDVSA had transferred U$D 7.6 billion. More in Spanish: (El Universal,
09-18-2012; http://www.eluniversal.com/economia/120918/111-millardos-traspasaron-pdvsa-y-el-bcv-al-fonden)
The economy grows as imports soar
and inflation persists
Imports into Venezuela increased by 25.3% during the
first semester 2012, and exports rose only 7.9%. Public oil imports were U$D
4.905 billion. In the meantime, GDP growth is among the largest in region, and
the nation has its highest rate of inflation, according to data from the UN
Economic Commission for Latin America and the Caribbean. More in Spanish: (El
Mundo, 09-18-2012; http://www.elmundo.com.ve/noticias/economia/politicas-publicas/economia-venezolana-crece-junto-con-su-tendencia-i.aspx)
Venezuela's country risk decreasing steadily
Venezuela's indicator of sovereign risk has decreased constantly
over the past weeks as the Emerging Markets Bond Index Plus (EMBI+) shrank by
more than 200 points, in comparison with that registered late last year, and
hit 924 points above US Treasury Bonds last week (September 10 - September 14).
This means that there has been a slowdown in the markets' perception of risk
and possible sovereign debt default, despite the fact that Venezuela remains
among the world's riskiest countries. (El Universal, 09-17-2012; http://www.eluniversal.com/economia/120917/venezuelas-country-risk-shows-a-reduced-decrease)
Dollar denominated accounts
authorized in local banks
Starting yesterday individuals and companies may open dollar denominated
accounts in Venezuelan banks, according to a Central Bank resolution - published
in the Official Gazette number 40,002. No minimum amount is required for
opening these accounts. More in Spanish: (Ultimas Noticias, 09-17-2012; http://www.ultimasnoticias.com.ve/noticias/actualidad/economia/desde-este-lunes-se-podran-abrir-cuentas-en-dolare.aspx)
Commodities
Electric Energy Minister admits
failures
Héctor Navarro, Minister for Electric Energy, has
admitted power failures over the last two weeks within the National Electricity
System (SEN) due to problems in the power generation units. The minister also said
that energy demand increased early in September 323MW with respect to figures
recorded in 2011, yet he did not reveal overall consumption. "Demand is currently met and maintenance
plans are already in place." (El Universal, 09-14-2012; http://www.eluniversal.com/economia/120914/venezuelan-minister-of-energy-grants-energy-failures)
International Trade
Paraguay formally rejects Venezuela
in MERCOSUR
Paraguay filed a formal protest against the MERCOSUR decision to suspend
it following the ouster of former President Fernando Lugo and the incorporate
Venezuela as a full member of the bloc. The government of President Federico
Franco, who replaced Lugo after a swift impeachment, said the protest was a
result of "serious abuses committed"
More in Spanish: (El Mundo, 09-17-2012; http://www.elmundo.com.ve/noticias/economia/internacional/paraguay-formaliza-rechazo-contra-ingreso-de-venez.aspx)
Logistics
& Transport
La Guaira port modernization 18.55%
ahead
Work on modernizing the port of La Guaira has progressed 18.55%,
according to information provided by the Deputy Minister of Popular Power for
Water and Air Transport and Port Authority Vice President, General Pedro
Castro. The contract calls for implementation in 10 months and is scheduled for
completion in 2014. More in Spanish: (Bolipuertos, 09-17-2012; http://www.bolipuertos.gob.ve/noticia.aspx?id=6023)
Politics
Opposition chides Chavez over recent
weeping jag
The opposition presidential candidate has chided Hugo
Chavez for publicly weeping over the loss of freedom he has had to contend with
during his 14 years in power, all part of an increasingly dramatic campaign
ahead of the Oct. 7 vote. Facing his toughest-ever re-election challenge,
socialist "revolutionary" Chavez teared up during a televised speech
on Saturday, lamenting the loss of his freedom to roam anonymously through
Venezuela's towns and countryside. Henrique Capriles, the business-friendly
candidate seeking to unseat Chavez, told a rally that the incumbent should not
be crying for himself but for the Venezuelans who have suffered rising crime
and economic mismanagement under his rule. (Reuters; 09-16-2012; http://www.reuters.com/article/2012/09/16/venezuela-election-idUSL1E8KG4QK20120916;
The Washington Post, http://www.washingtonpost.com/world/the_americas/venezuelas-capriles-slams-chavez-for-crying-over-his-lost-freedoms-instead-of-murder-victims/2012/09/16/6df8ebd4-0063-11e2-bbf0-e33b4ee2f0e8_story.html)
Presidential elections decisive to Venezuela's
foreign policy
Foreign diplomatic missions appointed to Venezuela are
closely keeping track of the Venezuelan political process as the effects of the
results of the upcoming Venezuelan presidential election will extend beyond the
country's borders.
After 14 years in office and hoping to extend his rule to
20 years, President Hugo Chávez aims to continue privileging countries with
common ideological interests that opposing US interests. Opposition
presidential candidate Henrique Capriles Radonski seeks a return to Venezuela's
historic institutional position, with strong ties in the Western world, ready
to give special treatment to its main business partners such as the US or
Colombia, and keen on achieving the Latin American integration through
institutions such as the Organization of American States (OAS), the Andean
Community of Nations (CAN), and MERCOSUR. (El Universal, 09-17-2012; http://www.eluniversal.com/nacional-y-politica/120917/venezuelas-foreign-policy-decisive-in-presidential-election)
Growing failure rate in voting
machines concerns experts on both sides
Experts from both sides of the Presidential elections are
concerned with failures in voting equipment which are emerging during the
production audit, which show over 600 units programmed for the forthcoming
voting process. More in Spanish: (El Nacional, 09-18-2012; http://www.el-nacional.com/)
Former Colombian President Álvaro
Uribe insists Chávez has been an “accomplice”
of the Colombian guerrilla FARC and
explained this was evidenced after Rodrigo Granda was captured by Colombia in
2004, when Chavez broke diplomatic relations. Uribe said “Granda had travelled to Caracas with Chávez's authorization” to
participate in a political event, and says that "proves his complicity with terrorism.” (Veneconomy, 09-16-2012; http://www.veneconomy.com/site/index.asp?ids=44&idt=32073&idc=1)
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