COMMENT Hugo Chávez is in increasing trouble with his electorate. The Venezuelan president’s approval ratings have fallen from above 60 per cent a year ago, a full 10 years into his reign, to 50 per cent now. His party’s position is now threatened. It may fare poorly in September’s congressional elections. So Mr Chávez has acted boldly – and, true to form, recklessly.
Last week he announced a devaluation of the bolivar, the national currency. In place of a single rate of 2.15 bolivars to the US dollar, there will now be a corruption-breeding system of three prices; a rate for essential goods at 2.6 bolivars to the greenback, an official “oil dollar” rate for everything else at 4.3, and a market rate.
