VIO News Blog

April 30, 2009

New Venezuelan Central Bank Head Appointed

Dow Jones reported yesterday that Venezuela’s National Assembly approved President Chavez’s decision to nominate Nelson Merentes to head the country’s Central Bank.  Merentes, who was Finance Minister from 2004 to 2007, was in charge of the purchasing and selling of structured notes made up of sovereign debt from other Latin American countries who sought to end their dependence on the International Monetary Fund.  The presidency of the Central Bank has been vacant since the death of its last president in December of last year.

The Washington Post has published yet another editorial encouraging the Obama Administration to adopt a harder line towards Venezuela.  According to the Post, the judicial measures taken against several government opponents facing corruption charges are evidence of a “a major new campaign against what remains of Venezuela’s democracy”.  Not mentioned in the heavily biased editorial is the fact that pro-government figures, like ex Mayor of Caracas Juan Barreto, are also being prosecuted for crimes involving corruption.

Political comment pieces in the Washington Times and the Kansas City Star include short references to President Obama’s friendly handshake with President Chavez at the Summit of the Americas in Trinidad.  The Washington Times refers derisively to the “cerebral president’s” courteous attitude towards “America-hater Hugo Chavez”, despite the fact that the Venezuelan president has often stated that, while he had serious differences with the Bush Administration, he has wished to maintain the best possible relations with the people of the United States.

Finally, the Los Angeles Times has reported that a Florida pharmacy confirmed that a medication given to 21 prized polo horses from Caracas that died at the US Open polo tournament had been incorrectly prepared.   Franck’s Pharmacy of Ocala, Florida announced that “the strength of an ingredient in the medication was incorrect.”

April 3, 2009

Chavez Calls for Elimination of International Monetary Fund

Late Thursday, President Chavez criticized the G-20’s approach to dealing with the global financial meltdown, stating that “it’s impossible that capitalism can regulate the monster that is the world financial system.” He called for the elimination of the International Monetary Fund and attacked the US and Britain for having promoted the financial model that led to the crisis.

Venezuelan authorities arrested Raul Baduel, a former Venezuelan defense minister on corruption charges, Reuters reports. Baduel has said that he is being persecuted politically, as he was once a close ally of Chavez and then became a vocal opponent in 2007. Prosecutors have accused Baduel of illicit enrichment, stating that during his time as minister $14.4 million went missing from the budget of the Armed Forces.

Iran and Venezuela agreed on Thursday to further strengthen ties, according to AFP. The Iranian President Mahmoud Ahmadinejad stated that “a ten-year plan for the two countries’ ties as well as a plan to combat the global crisis will be drawn up” during President Chavez’s visit. The launch of a joint Iranian-Venezuelan development fund is scheduled to take place today.

A Dow Jones article asserts that a dip in Venezuela’s dollar reserves from $29.7 billion in February to $28.6 billion in March, represents a “weaker protection as it faces financial pressures triggered by the collapse in the price of oil” It should be noted that, aside from its significant Central Bank reserves, Venezuela still has billions of dollars of reserves in separate state funds which it can draw from if the price of oil remains low.

Finally, during a trip to China and Japan this week, Chavez said he will seek investment agreements to finance oil projects, Bloomberg reports.

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