Venezuelans have expressed concern that the second devaluation of their country’s currency in 12 months could mean new economic difficulties. The government announced Jan. 1 it is devaluing the bolivar to help boost spending and local economic growth, Reuters reports. Officials said the devaluation should also ease pressure on the country’s foreign reserves and free up dollars for imports. However, some observers say the move is expected to increase inflation in the coming weeks, according to Reuters.

    About the author

    • Ivy Mungcal

      As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.