Thursday, January 22, 2015

Bonds slip, foes gripe at Maduro's Venezuela economic changes

Venezuelan bonds edged down while opponents lampooned economic changes by President Nicolás Maduro that included a seeming devaluation of the currency and an imminent rise in domestic gasoline prices.

Under pressure over the OPEC member's recession, product shortages and plunging oil revenues, Maduro has opted to keep a complex three-tier currency control system, though bands have been shifted to ensure more dollars are sold at higher levels.

In an annual speech to parliament yesterday night, Hugo Chávez's successor also bit the bullet on the politically-sensitive subject of fuel prices, currently the cheapest in the world, saying a rise was inevitable this year.

Economists had been recommending changes on both issues.

But without price specifics on either, or any major structural changes to the socialist model, Maduro's critics said he had not done enough to rescue a shrinking economy and combat shortages plaguing Venezuela's 30 million people.

"Today more than ever, we have to unite all Venezuelans to get out of this crisis," opposition leader Henrique Capriles said, mocking Maduro as a "pirate" and "liar" and urging people to rally on the streets against him in coming days.

In early trading, Venezuelan debt slipped slightly.

The benchmark Global 2027 was off 0.35 points to yield 28.242 percent.

Venezuela's lively Twitter scene was abuzz with debate, and some ridicule, over Maduro's most headline-grabbing phrases, including his reassurance that "God will provide" in the face of oil revenues that have plunged by more than half.