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Venezuela Will Align Exchange Rates, BofA Says

Venezuela will replace its three legal foreign-exchange rates with a single valuation of 45 per dollar next year, representing a devaluation of as much as 86 percent, according to Bank of America Corp.

“The government faces no major electoral constraint to a large devaluation of the currency,” Francisco Rodriguez, senior Andean economist at the Charlotte, North Carolina-based bank, said today in an e-mailed research note to clients. “Most of the economic and political costs of such an adjustment were already paid.”