Venezuelan Government clings to economic controls after 10 years

One decade of regulations seems not to be enough for the Venezuelan Government. It has been 10 years since the first foreign exchange controls and price regulations were enforced. However, further restrictions have been announced by the Executive Office.

In addition to devaluation, Planning and Finance Minister Jorge Giordani announced on February 8 the incorporation of the Higher Agency for Upgrade of Exchange System. The new institution aims at monitoring in depth the sale of US dollars to companies.

However, economic moves are to come in areas other than the foreign exchange market. Other steps may include widening the scope of price regulations, some government officials have warned.

For instance, Food Minister Carlos Osorio remarked recently that the Government has no intention of lifting price controls. "We are rather going to reinforce regulations. If we have to regulate other products, we will. We will keep on protecting people."

Additionally, the Superintendence of Costs and Prices (Sundecop) announced that it will soon set the selling prices for drugs, among other products.

Translated by Jhean Cabrera