Venezuela Said to Plan Increased Supply of Weaker Bolivars

Venezuela’s central bank is considering ways to expand the supply of bolivars at the weaker of two official exchange rates in a bid to attract more dollars into the economy and avoid a full-blown devaluation that economists say is needed to narrow its budget deficit, said a government official with direct knowledge of matter.

The central bank may expand the purchase of dollars at a rate of 5.3 bolivars to persuade foreign companies to bring more greenbacks into the country, said a government official with direct knowledge of the matter. Today, most companies have to sell dollars at the 4.3 rate because there isn’t enough supply at the weaker rate.