Chavez Choking on Bolivars to Spur Venezuelan Bond Sales
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The bolivar’s plunge to a record on the black market is pressuring Venezuelan President Hugo Chavez to end the longest drought of dollar-bond sales in five years.
Venezuela hasn’t issued bonds denominated in U.S. currency since October last year, after selling a record $7.2 billion in the first 10 months of 2011, according to data compiled by Bloomberg. State-owned Petroleos de Venezuela SA, Latin America’s largest oil producer, last sold dollar-denominated notes in May. The yearlong drought is leaving the central bank without enough dollars for Venezuelans to buy at official fixed rates, sparking the bolivar’s 42 percent drop this year in the unregulated market. The bolivar declined 6.2 percent today.