Devaluation Of Currency Increases Risk Of Food Appropriations

In line with our expectations, the Venezuelan government devalued the bolívar on January 1 2011 by unifying the 'essential goods' rate of VEF2.6000/US$ with the higher 'non-essential' VEF4.3000/US$ rate. This has implications for the food and drink sector, weaker currency potentially putting more pressure on margins, with producers no longer able to import raw materials at the 'essential goods' rate and the possibility of higher inflation putting further pressure on the government to take control of production through

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