Economics &
Finance
Key pro Government legislator
forecasts FOREX rate adjustment in Venezuela
Rodrigo Cabezas, former Finance Minister and Speaker of
the Latin American Parliament, says some economic adjustments are to be
implemented in 2013 in Venezuela, and will be announced gradually by the
relevant ministers.
Adjustments may include changes in the price of some
goods and services, and the foreign exchange rate, as well as some fiscal
reforms and steps to curb speculation. Cabezas says "the main thing we must do is preserve growth" and ensure
competitiveness, not simply use devaluation for fiscal purposes which has
always been inflationary". (El Universal, 01-21-2013; http://www.eluniversal.com/economia/130121/deputy-forecasts-forex-rate-adjustment-in-venezuela)
Central Bank seeks shelter in US
dollar to protect international reserves
Despite past verbal attacks by President Hugo Chávez on
the US dollar, the Central Bank of Venezuela (BCV) is relying on US bills for
international reserves. BCV's President Nelson Merentes explains that
"for the purpose of minimizing the
risks stemming from the widespread global economic crisis, it (the BCV)
privileged safety and liquidity in its investment strategy for international
reserves, and therefore it cut down non-US dollar exposure, as other foreign
currencies were expected to depreciate." (El Universal, 01-19-2013; http://www.eluniversal.com/economia/130119/venezuela-seeks-shelter-in-us-dollar-to-protect-international-reserves)
Domestic debt up 62% in 2012
The Venezuelan government is now issuing debt massively
in bolivars in order to meet skyrocketing public spending. As a consequence,
devaluation would grant the government more bolivars for dollars and
immediately reduce the burden on public
accounts. Research firm SÍNTESIS FINANCIERA has just reported that Venezuela's
domestic debt, that is the debt in bolivars, closed 2012 at VEB 249.3 billion
(U$D 57.97 billion) in 2012, 62% higher than in 2011, rising from 9% of GDP to
16.3% of GDP. (El
Universal, 01-21-2013; http://www.eluniversal.com/economia/130121/venezuelan-domestic-debt-jumps-62-in-2012)
Venezuela's population increased by
over 4.1 million between 2001 and 2011 for a total 28.946 million, according to Census data
released by the National Statistics
Institute. The report reveals 88.8% live in urban areas and 11.2% in rural
areas. More in Spanish: (AVN, 01-22-2013; http://www.avn.info.ve/contenido/poblaci%C3%B3n-venezolana-se-increment%C3%B3-m%C3%A1s-41-millones-personas)
Abandoned U$D 200 million government
owned rice processing plant occupied by 1500 unemployed
A rice processing plant bought from China at a cost of U$D 200 million,
which was abandoned on Cocuina Island in Delta Amacuro State has been taken
over by over 1500 unemployed inhabitants of the region. Occupiers demand the
project be reactivated and include them as workers. More in Spanish: (El
Nacional, 01-22-2013; http://www.el-nacional.com/)
Commodities
Ambani said to mull U$D 2 billion Venezuela spend
Reliance Industries Ltd. (RIL) plans to spend more
than U$D 2 billion on Venezuelan oil fields, betting President Hugo
Chavez’s failing health won’t lead to political upheaval, said a person with
direct knowledge of the decision. The operator of the world’s biggest refining
complex is jointly assessing investments in four oilfields in with state-run
company Petróleos de Venezuela SA, said the person, who asked not to be
identified, citing confidentiality terms. Reliance is waiting for data on the
blocks from PDVSA to start the due diligence process, the person said.
(Bloomberg, 01-21-2013; http://www.bloomberg.com/news/2013-01-20/ambani-said-to-mull-2-billion-venezuela-spend-corporate-india.html)
FAO reports hunger virtually
eliminated in Venezuela, a major regional importer of wheat, corn and soy
The FAO Regional Office for Latin America and the Caribbean's recently
published "Panorama of Food and
Nutrition Security for 2012" shows Venezuela has a very low hunger
index within the region and "has managed to eliminate hunger, with an
index under 5% as the regional average is 8.3%, due to MERCAL and other
government sponsored programs. The report points out Venezuela is one of the 5
major importers of wheat, corn and soy in the region. More in Spanish: (El
Nacional, 01-22-2013l; http://www.el-nacional.com/)
International Trade
Food imports from Argentina will increase in order to prevent shortages the government
does not admit to. The announcement was made by Vice President Nicolás Maduro
and Argentinean Planning Minister Julio De Vido during an event in Caracas. The
goal is to guarantee Venezuela “has a
three month intact food reserve and no one in the market can leave short of
basic products,” explained Maduro. (Veneconomy, 01-20-2013; http://www.veneconomy.com/site/index.asp?ids=44&idt=33401&idc=3)
Venezuela will spend U$D 16 million
in Uruguay milk imports
Uruguayan Foreign Minister Luis Almagro says President José Mujica's
recent support to the Chavez regime has opened up Uruguayan powdered milk
exports to Venezuela. He announced an agreement to send Venezuela 4500 tons of
powdered milk monthly for a total around U$D 16 million. More in Spanish: (El Universal, 01-22-2013; http://www.eluniversal.com/economia/130122/venezuela-invertira-16-millones-en-comprar-leche-a-uruguay)
Logistics
& Transport
Port costs fuel inflation
Cipriana Ramos, FEDECÁMARAS Vargas President and
coordinator of the Customs and Port Affairs Committee says imported products
have to wait about 45 days to be nationalized at an average daily cost of U$D
15,000 as well as additional payments to the Port Authority which hit both the
importer and the final consumer as they become reflected in inflation. More in
Spanish: (Tal Cual, 01-21-2013; http://www.talcualdigital.com/index.html)
Imports are projected at 2,500
containers, plans to expedite cargo are announced
SENIAT, Venezuela's tax authority, along with the Port
Authority (BOLIPUERTOS) and the CASA food distribution system are estimating
2,500 food containers will arrive over the next few months and hope to dispatch
100 units daily by increasing the number of processing offices for food and
bulk imports to 6, working 24x7 at Puerto Cabello port. They also say there
will be a permanently open Non-Intrusive Inspection Circuit. More in Spanish:
(Notitarde, 01-22-2013; http://www.notitarde.com/La-Costa/Aumentar%C3%A1n-taquillas-para-despacho-de-la-carga-de-alimento-y-al-granel/2013/01/21/161238)
Politics
Chavez brother says leader expected to return home from
Cuba in 'coming days'
One of Hugo Chavez's brothers
says the Venezuelan president is expected to return home from Cuba in the
coming days as he continues to recover nearly six weeks after undergoing cancer
surgery. Argenis Chavez is one of the president's five brothers and the
president of the National Electric Corporation. He tells The Associated Press
that the president continues to recover. He said after an event Monday at the
Supreme Court that the decision about when Chavez returns is up to his medical
team but that he is expected to return to Venezuela in the "coming days." (Fox News,
01-21-2013; http://www.foxnews.com/world/2013/01/21/brother-chavez-says-venezuela-leader-expected-to-return-home-from-cuba-in/#ixzz2Ie7knfkD;
The Washington Post, http://www.washingtonpost.com/world/the_americas/brother-of-chavez-says-venezuela-leader-expected-to-return-home-from-cuba-in-coming-days/2013/01/21/9facfad8-6406-11e2-889b-f23c246aa446_story.html)
Maduro says Chavez to start new step in recovery
President Hugo Chavez will soon enter a new stage in his
recovery from a fourth cancer operation in Cuba, Vice President Nicolas
Maduro said, without providing further details. Maduro says he last saw
Chavez Jan. 14 during a visit to the Venezuelan president’s bedside in Cuba. “He is stabilizing in all his medical
indicators, in the function of his organs, in all his fundamental vital
indicators and is fully conscious,” Maduro said today in an interview on
the Televen television network. “He is
gaining vital strength to begin a second stage of recovery that will be
announced through official reports.” (Bloomberg, 01-20-2013; http://www.bloomberg.com/news/2013-01-20/venezuela-s-maduro-says-chavez-to-start-new-step-in-recovery-1-.html;
El Universal; http://www.eluniversal.com/nacional-y-politica/130120/vp-maduro-chavez-is-to-start-a-second-phase-of-treatment;
Latin American Herald Tribune, http://www.laht.com/article.asp?ArticleId=663599&CategoryId=10717;
Fox News, http://www.foxnews.com/world/2013/01/20/venezuela-vp-says-optimistic-hugo-chavez-will-soon-return-to-homeland-following/)
Maduro will travel to Chile, along with Elías Jaua to attend the two summits to be held
this week, announced Chilean Foreign Affairs Minister Alfredo Moreno on Monday.
The Latin American and Caribbean States Community (CELAC) Summit with the
European Union will be held on January 26 and 27 and a CELAC Summit will take
place on Monday, January 28. (Veneconomy, 01-21-2013; http://www.veneconomy.com/site/index.asp?ids=44&idt=33415&idc=1; El
Universal; http://www.eluniversal.com/nacional-y-politica/130121/venezuelan-vp-fm-to-attend-celac-european-union-summit-in-chile)
Foreign minister Jaua in Havana,
plans foreign policy discussions with ailing Chavez
Venezuela's top diplomat says he plans to visit President
Hugo Chavez in Cuba, where the ailing leader remains out of sight more than a
month after a fourth cancer- recovering from cancer surgery. Foreign Minister
Elias Jaua says he intends to meet with Chavez to discuss Venezuelan foreign
policy. (Fox News, 01-23-2013; http://www.foxnews.com/world/2013/01/21/venezuelan-foreign-minister-in-havana-plans-foreign-policy-discussions-with/#ixzz2Ie7TOTBt)
Envoy says Venezuela open to better
ties with U.S.
Venezuela's government is open to improving troubled ties
with Washington and is considering a U.S. proposal for the return of anti-drug
agents kicked out of the country eight years ago by President Hugo Chavez, a
senior official said.
There has been no word from Chavez since he had cancer
surgery in Cuba five weeks ago, so every move the government makes in his
absence is being picked over for clues to what the OPEC nation might look like
in a post-Chavez era. Venezuela's ambassador to the Organization of American
States (OAS), Roy Chaderton, said U.S.-Venezuela relations were "not hot, not cold. Zero degrees".
(Reuters, 01-20-2013; http://www.reuters.com/article/2013/01/20/venezuela-chavez-idUSL1N0AP0FZ20130120)
Colombia's Santos: "I
do not think as Chavez does, but respect differences"
Colombian President Juan Manuel Santos says his
government has seriously tried to respect the balance of power, and that
"there cannot be good government without total press freedom". He
also say he is far from agreeing with President Chavez, but seeks to find
common issues to work together despite while respecting differences. More in
Spanish: (El Nacional, 01-22-2013; http://www.el-nacional.com/)
Supreme Court President Luisa
Estella Morales pledges support for "Bolivarian
socialism"
She made here statements in the opening ceremonies for the 2013 judicial
period, and specifically mentioned the five key objectives in the plan
presented by President Chavez for 2013-2019, including "the continuing construction of XXIst century
Bolivarian socialism". More in Spanish: (El Nacional, 01-22-2013; http://www.el-nacional.com/)
The following brief is a synthesis of the news as reported by a variety of media sources. As such, the views and opinions expressed do not necessarily reflect those of Duarte Vivas & Asociados and The Selinger Group.
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