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LatinNews Daily Report - 26 July 2013

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In Brief - Venezuela

ECONOMY | Sicad 3 on 29 July. The central bank president Edmée Betancourt on 25 July said the bank would hold a new foreign currency auction under the Sistema Complementario de Administración de Divisas (Sicad) on Monday 29 July. The last Sicad auction (and the first since the April presidential election) was held on 11 July, with US$215.3m sold. Betancourt said Sicad auctions would take place every 15 days “bearing in mind that this is a complementary system” and noting that most currency assignations would be done through the main Comisión de Administración de Divisas (Cadivi). Up to date disbursal figures for the Cadivi are publically unavailable, but in 2012, it provided US$141m a day, or US$27bn over the year. Betancourt said  the current inflation spike was coming under control. Without giving any figures, she recognised that inflation this year would be high, but discounted the spectre of hyperinflation. She blamed speculators and opposition sectors for launching an “economic war” against the government that had fuelled inflation from late last year. Accumulated inflation in the first five months was 19.4%.