Market Analysis

network owned by the French company Casino. Trying to rein in inflation, the head of the Latin American state has threatened to continue the expropriation of the owners of shops that unduly inflate the prices.

galloping inflation problem has arisen in Venezuela, Jan. 8, 2010, when the government devalued the national currency - Bolivar - 17% and 50% depending on the type of transaction. The result is two official fixed rate - 2.6 bolivar to the dollar for imports of basic commodities such as food and medicines, and 4,3 bolivar to the U.S. dollar - for all other types of exchanges.

arose after the panic that led people to exchange money for goods, while they kept the old price. Venezuela began roaring demand for household appliances and imported electric appliances, a natural consequence of which became uncontrollable rise in prices. As punishment for "unjustified overcharging" January 15, authorities closed 619 stores in Venezuela, but the leader of the country was dissatisfied with the effect, and demanded more stringent measures.

"Closure of the supermarket one day to nothing lead. The next day they are opened and re-raise the price of any more goods, making up for lost time yesterday. No, I propose that the expropriation of such enterprises. How long shall we allow transnational corporations to come to the Venezuelan market for speculation? In connection with numerous violations of Venezuelan law Exito network is now owned by the republic, no turning back "- Chavez said in the next release of its weekly Sunday program" Alo Presidente. "

On Saturday, Venezuelan President appealed to parliamentarians to amend the legislation changes that will expropriate the shops for speculation. According to the forecast of Parliament Representative Mario Isea, the relevant amendments, establishing penalties for unjustified price increases will be adopted in February 2010

Group

Exito lose located in Venezuela six hypermarkets and 35 supermarkets. Belonging to her trading areas, as well as warehouse and administrative facilities will be used to create a company Comerso - riteylerskoy new public network, which is intended Hugo Chavez, will sell products and to provide diversified services for the "socialist" prices.

Representatives Casino on the loss of Venezuelan assets reacted with restraint. According to the French, shops Exito provide the company 2.6% of revenues, but almost no profit, so their loss will not affect the financial results and strategy Casino.

much more emotionally news expropriation Exito perceived independent analysts. According to a leading strategist of investment company Maxim Group Barry Ritholtza, the Venezuelan government is trying to regulate everything, including the laws of arithmetic, but it will not be able to keep price increases. "The president should correct economic policies, rather than selecting individual property. His socially oriented policy and attempts to increase state control of business are driving our country into ruins," - said in a radio broadcast Union Chamber of Commerce, the head of Venezuela"s Victor Maldonado.

Currently, inflation in Venezuela is the highest in Latin America: in 2009, consumer prices have risen to 25-27%. According to the forecast the Finance Minister Ali Rodriguez, the recent devaluation of the bolivar can add to the inflation rate in 2010 for another five percentage points. At the same time, the former head of the Central Bank of Venezuela, Domingo Maza Zavala contends that because of inadequate government action, inflation will double to reach 60%.

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