Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Trump: Fake News And Unnamed Sources

Read more

THE WORLD THIS WEEK

Trump Administration, Trukey Crackdown, French Presidential Race (part 1)

Read more

THE WORLD THIS WEEK

Trump Administration, Trukey Crackdown, French Presidential Race (part 2)

Read more

FRANCE IN FOCUS

Aux Champs-Elysées: The story behind France's most famous avenue

Read more

#TECH 24

Foosball gets its own social network

Read more

YOU ARE HERE

Inlays and veneers: The art of French cabinetmaking

Read more

PEOPLE & PROFIT

How should companies respond to a Trump Twitter attack?

Read more

#THE 51%

Trump abortion funding ban: Europe tries to fill the breach

Read more

REPORTERS

Video: India’s Kuki people, possible descendants of one of Israel's lost tribes

Read more

Americas

Franco-Colombian supermarket chain to be nationalised

Text by News Wires

Latest update : 2010-01-18

Venezuelan President Hugo Chavez announced on Sunday that his government would expropriate the Franco-Colombian supermarket chain Exito ahead of the official devaluation of the bolivar currency on Monday.

AFP - President Hugo Chavez on Sunday said the government would expropriate the Franco-Colombian supermarket chain Exito for price speculation, in the wake of the devaluation of the national currency, the bolivar, last week.

"The Exito chain, on grounds of numerous violations of Venezuelan laws, will belong to the Republic," Chavez said on his weekly, radio and television show "Alo Presidente."

He said he had ordered Congress to quickly pass a new law for the nationalization of Exito, which he hoped would become a "sword" against any retailer who raises his prices to "speculative" levels.

The Exito chain is majority owned by French group Casino and has branches in several Venezuelan cities. It sells everything from food to home appliances.

Chavez a week ago announced a crackdown on price gouging a day ahead of an official devaluation of the bolivar, which on Monday began trading at 4.30 to the US dollar for "non-essential" goods -- double the previous rate -- and at 2.60 for basic goods.

By Thursday, he made good on his threat by temporarily shuttering more than 600 retail stores, some of which he accused of hiking prices by 80 percent.

In addition to being shuttered, the shops accused of speculation must also pay a fine.

The bolivar devaluation was the first since 2005, and was designed in part to bolster public finances that have withered amid dwindling oil revenues and a rapidly contracting economy.

Critics said the move would allow Chavez to boost public spending ahead of elections in September but could severely damage the health of the economy.
 

Date created : 2010-01-18

COMMENT(S)