Venezuelan government devalued the currency by 46.5%

Finance Minister, Jorge Giordani, and President of Bco. Central, Nelson Merentes

The decision was expected since early this year and will take effect on Wednesday. The opposition rejected what they called a “paquetazo” (a controversial package).

Finance Minister, Jorge Giordani and Central Bank President Nelson Merentes, announced a devaluation of the bolivar from 4.30 to 6.30 per dollar, when 10 years of the change control system is commemorated and President Hugo Chavez continues convalescing in Cuba.

Giordani said that the measure is complemented by the creation of a body, to “optimize” the performance of the control system of currencies. It also said that the measures taken are to preserve the expectations on economic growth estimated at 6.0% of the GDP.

On the other hand, Economist Alexander Guerrero said that the measures will have a brutal impact on the economy. “A near 50% devaluation and the economy will contract by 2.3%, negative growth, two additional points in unemployment and inflation of 35% for 2013,” he stated.

Henrique Capriles

Through his twitter account, opposition leader Henrique Capriles called the government as “liars” and accused it of have been concealing a red “paquetazo”. “Oil at $ 106 and they devaluate. Money was spent in campaigning, corruption, foreign gifts “the Government is a liar!”

Minutes before announcing the move, Vice President Nicolas Maduro said that President Chavez was worried about the country’s economy and called on citizens for “great efforts” to keep economic growth.