Chavez ally: economic adjustments being considered

Topics: From the Wires,

CARACAS, Venezuela (AP) — An ally of President Hugo Chavez says the government is considering economic adjustments to combat Venezuela’s 20 percent inflation.

Former Finance Minister Rodrigo Cabezas told the Venezuelan station Union Radio on Monday that he understands the government is considering decisions relating to anti-inflation measures and “adjustments in some prices.”

Cabezas, a well-connected mid-level leader within the socialist president’s movement, is currently president of the Latin American Parliament, a regional organization. Cabezas also said that officials who are in charge of economic policies are to make decisions relating to currency exchange. He didn’t give details about what the measures could include.

Venezuela maintains strict currency exchange controls as well as price controls on many foods and other items.

Sporadic shortages of some foods, such as flour, cooking oil, chicken and coffee, have worsened in recent months. Causes include insufficient domestic production of such items, bottlenecks at ports and a reduction in the supply of dollars being granted by the government to import businesses.

Following months of heavy spending leading up to the country’s October presidential vote, the government starting in November reduced the amounts of dollars provided at the official exchange rate, putting new pressures on the country’s currency, the bolivar.

There have been growing rumors of a possible devaluation in recent months as the value of the dollar in black market currency trading has shot up to more than four times the government-set rate of 4.30 bolivars to the dollar.

Some analysts have said they expect the government may put off difficult economic decisions such as a potential devaluation while Chavez recovers from cancer surgery.

Chavez hasn’t been seen or spoken publicly since before his Dec. 11 operation in Cuba for an unspecified type of pelvic cancer.

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Gripping photos: The people of the Turkey protests (slideshow)

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  • The protests take on a festive element as police forces move out of the park and square. Wearing a gas mask, this young man dances to traditional Turkish music in front of Taksim Square’s Ataturk Monument.

  • In Gezi Park since March 31st, this protester, originally caught off-guard by the Government’s teargas and water cannons, went out and bought a Russian army mask from WWII, preparing for what was to come.

  • This rambunctious boy seems to be enjoying the chaos. After taking this picture he threw a stone at the already destroyed building in the background.

  • Forming a line, the police face off directly with protesters in Taksim Square. After a while, they retreated and there was a general cheer – a back-and-forth dance that has been common since the beginning of this protest.

  • An elderly woman in Gezi Park reads the news. The tent community occupying the park was violently destroyed on June 16th.

  • Many different groups had set up booths to promote their cause in Taksim Square and Gezi Park. Standing in front of one, this man waves his flag while posing with conviction.

  • Many home-remedies are used to minimize the effects of tear gas. This woman has put a milky solution on her face, removing her mask after the tear gas dissipated. Before sunrise, the police came again for another round of teargasing.

  • People capitalize on the uprising -- selling flags, beer, gas masks, sky lanterns and spray paint to name just a few of the popular items.

  • On Monday morning, June 11, the police execute a strong offensive. Many plain-clothed police officers, like the ones seen here, clash with protesters in the side streets away from the main stand-off in Taksim.

  • The authorities seem to be most aggressive in the night, pushing protesters away from the square and park. After being teargassed this young woman catches her breath with other protesters on Siraselviler Street.

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