Capriles calls for "perfect unity" to tackle crisis in Venezuela

Dissenting Miranda state governor, Henrique Capriles Radonski, demanded the government to stop giving oil away, increase production to recover the market lost over the last years, and stop threatening the private sector

Opposition Miranda state governor, Henrique Capriles Radonski, asserted on Wednesday that dissenters should work together to face the problems in Venezuela because "this is not a time for disputes," for there is a much bigger aim.

In a press conference with local and international media, the governor stressed that the opposition will be restructured not only around the Unified Democratic Panel (MUD), a body he described as a coordination body, but also around something transcending that coalition. "This is a moment for team work; perfect unity has to be achieved."

He added that he had held talks with former deputy María Corina Machado, and that he would talk to dissenting party Voluntad Popular (Popular Will) leader and Metropolitan Mayor, Antonio Ledezma.

"For those who are asking what we should do, I can tell you that there are proposals which we can make a reality based on people's pressure. If censorship is imposed on the people, then it is time for people to express themselves on the streets," Capriles asserted, as he announced that an anti-government demonstration would be staged soon.

Moreover, he demanded the government, as a first step to overcome the crisis, to stop giving oil away, increase production to recover the market the country has lost over the last years, stop threatening the private sector, provide a balance of the plots of land that have been seized by the government, and disclose the list of the front companies that have received and embezzled foreign currency from the National Center for Foreign Trade (Cencoex).

Source: http://www.eluniversal.com/

Venezuela's Sicad 2 insufficient to meet public sector demand

JP Morgan does not rule out an adjustment in the forex rate of the National Center for Foreign Trade from VEB 6.30 to VEB 8.40 per US dollar

MAYELA ARMAS H. |  EL UNIVERSAL

Thursday March 20, 2014  10:02 AM

The Venezuelan Government started the New Year with a deficit in its fiscal accounts, which has led to a revision to the foreign exchange policy, including the incorporation of the Second Ancillary Foreign Currency System (Sicad 2), whose forex rate is set to fluctuate. Nonetheless, the effects of the new architecture would not satisfy demand if authorities fail to cut down on public spending.

Although authorities have not explained how much foreign currency supply would rise with the new supplementary mechanism, income would not be enough to meet the needs of public institutions.

The director of research economic firm Ecoanalítica, Asdrúbal Oliveros, has outlined that "although income deriving from Sicad 2 operations could be useful, a policy aimed at reducing public expenditure and a reform of the country monetary policy are needed."

In his view, Oliveros asserts that the impact of devaluation on the supplementary forex system is subject to other actions. Unless measures are adopted, the system would fail.

Meanwhile, JP Morgan deems Sicad 2 could gradually flow. The firm estimates oil giant Pdvsa would allocate USD 5-10 billion out of its oil revenues. Moreover, JP Morgan projects bonds stock held by public institutions would account for USD 5.8 billion.

In a report the firm also expresses the need for further policies. In this context, it does not rule out an adjustment in the forex rate of the National Center for Foreign Trade, from VEB 6.30 to VEB 8.40 per US dollar.