The daily fluctuations of the bolivar en Venezuela don't merit much attention. But I thought it was noteworthy that the PDVSA bond sale has attracted less interest than the Venezuelan government expected and that this has weakened the bolivar versus the dollar. Analysts before the sale had thought it would cause the bolivar to strengthen substantially against the dollar.
The current situation can only mean bad news for the Chavez administration. It seems to show that Venezuelans have little faith in the country's economy and in the bolivar.
Any further weakening of the Bolivar will mean problems for Chavez.
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