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| Venezuela Takes Steps to Ease Curbs on Currency | Venezuela Takes Steps to Ease Curbs on Currency |
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| CARACAS, Venezuela — Seeking to confront the deep economic problems that have helped fuel weeks of protests here, Venezuela’s socialist-inspired government took a step on Monday toward easing strict currency controls and opened what it says will be a free market for the sale of dollars to Venezuelans. | CARACAS, Venezuela — Seeking to confront the deep economic problems that have helped fuel weeks of protests here, Venezuela’s socialist-inspired government took a step on Monday toward easing strict currency controls and opened what it says will be a free market for the sale of dollars to Venezuelans. |
| The new exchange rate mechanism is intended to reduce the black market price of dollars, which had soared in recent months. | The new exchange rate mechanism is intended to reduce the black market price of dollars, which had soared in recent months. |
| Yet the impact of the measure, which is similar to a system that was shut down in 2010, depends on how much money the government allows to change hands in the new market and how freely it allows the market to operate. Alejandro Grisanti, an economist for Barclays, said the change “makes the exchange rate system more flexible,” adding, “And in that sense it’s very positive for Venezuela.” | Yet the impact of the measure, which is similar to a system that was shut down in 2010, depends on how much money the government allows to change hands in the new market and how freely it allows the market to operate. Alejandro Grisanti, an economist for Barclays, said the change “makes the exchange rate system more flexible,” adding, “And in that sense it’s very positive for Venezuela.” |
| The new system will operate in tandem with a base exchange rate of 6.3 bolívars to the dollar, which is reserved mainly for essential goods like food and medicine, and a secondary rate of about 11 bolívars to the dollar, used for some other types of imports. | The new system will operate in tandem with a base exchange rate of 6.3 bolívars to the dollar, which is reserved mainly for essential goods like food and medicine, and a secondary rate of about 11 bolívars to the dollar, used for some other types of imports. |
| The central bank said that the average rate of transactions on the system’s first day was 51.86 bolívars to the dollar. In the black market, bolívars had been selling for close to 90 to the dollar but dropped to less than 60 in recent days after the government, which gets its dollars from selling oil, the nation’s chief export, announced it would put the new system in effect. | |
| The sharp difference between the official rate and the black market rate created an incentive to buy dollars from the government at the official rate — claiming they were to be used for imports — and then resell them at the black market rate, at an enormous profit. It was not clear if the move would add significantly to inflation by making it more costly to import goods. Venezuela has one of the world’s highest rates of inflation, at more than 57 percent a year. | The sharp difference between the official rate and the black market rate created an incentive to buy dollars from the government at the official rate — claiming they were to be used for imports — and then resell them at the black market rate, at an enormous profit. It was not clear if the move would add significantly to inflation by making it more costly to import goods. Venezuela has one of the world’s highest rates of inflation, at more than 57 percent a year. |
| Also on Monday, the president of the National Assembly said a prominent opposition lawmaker was disqualified from serving in the Assembly because she had sought to speak at a meeting last week of the Organization of American States in Washington at the invitation of the Panamanian government, which allowed her to appear as a special representative of Panama. | Also on Monday, the president of the National Assembly said a prominent opposition lawmaker was disqualified from serving in the Assembly because she had sought to speak at a meeting last week of the Organization of American States in Washington at the invitation of the Panamanian government, which allowed her to appear as a special representative of Panama. |
| The Assembly president, Diosdado Cabello, said that the lawmaker, María Corina Machado, had violated a prohibition against holding other public offices. | The Assembly president, Diosdado Cabello, said that the lawmaker, María Corina Machado, had violated a prohibition against holding other public offices. |
| Ms. Machado “is no longer a deputy,” said Mr. Cabello, who also repeated a previous call for a criminal investigation of Ms. Machado for her role in organizing the protests. | Ms. Machado “is no longer a deputy,” said Mr. Cabello, who also repeated a previous call for a criminal investigation of Ms. Machado for her role in organizing the protests. |
| The move by Mr. Cabello, one of the country’s most powerful politicians, was the latest in a crackdown on opposition leaders since protests began last month. | The move by Mr. Cabello, one of the country’s most powerful politicians, was the latest in a crackdown on opposition leaders since protests began last month. |
| President Nicolás Maduro last month ordered the arrest of Leopoldo López, the leader of the Popular Will Party and an ally of Ms. Machado. He was accused of inciting violence in the protests. | President Nicolás Maduro last month ordered the arrest of Leopoldo López, the leader of the Popular Will Party and an ally of Ms. Machado. He was accused of inciting violence in the protests. |
| And last week, the authorities arrested the mayor of San Cristóbal, the western city where the protests have been most intense, while another opposition mayor was sentenced to 10 and a half months in prison for failing to carry out a court order to remove street barricades. | And last week, the authorities arrested the mayor of San Cristóbal, the western city where the protests have been most intense, while another opposition mayor was sentenced to 10 and a half months in prison for failing to carry out a court order to remove street barricades. |
| At the same time, the death toll linked to the protests rose, with the government saying on Monday that a soldier and a pregnant woman had been shot to death in separate episodes near the barricades. The government says that more than 30 people have died. | At the same time, the death toll linked to the protests rose, with the government saying on Monday that a soldier and a pregnant woman had been shot to death in separate episodes near the barricades. The government says that more than 30 people have died. |
| The United States Embassy in Caracas announced that it would stop scheduling appointments with Venezuelans applying for new tourist visas because it was understaffed. It said the problem was a result of the expulsion of three consular officials last month by Venezuela, which had accused them of recruiting students for training in violent tactics. |