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Venezuela's Double-Edged Devaluation

Unfinished skyscrapers mark the skyline of Caracas
Unfinished skyscrapers mark the skyline of CaracasPhotograph by Meridith Kohut/Bloomberg

The news that ailing Venezuelan leader Hugo Chávez is on a tracheal tube caps off a week of financial tumult for South America’s fourth-biggest economy, which devalued its currency by a third on Feb. 8, its fifth such intervention in a decade. Is the interim regime–Chávez has been out of sight since before Christmas—clearing the decks for a new economic regime? Whose regime? And when?

For all the uncertainty, those who have had enough stomach lining to invest in the country continue to be unfazed.