Authorities raid brokerages in Venezuela.
Global Banking News - 18 May 2010(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
Government authorities have raided two brokerages in Venezuela.
The raids are believed to be actions taken by the country's president to increase control over an unofficial foreign exchange market. On Sunday the government passed a law that made the central bank the sole authority to control foreign exchange in the country. The move was encouraged by the fall of the currency in parallel, unofficial markets.
Analysts believe that the move would worsen inflation and erode confidence in the economy. Brokerages operating in the unofficial market have almost stopped business following the passing of the new rule.
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