Friday, September 07, 2007

Venezuela bank rate balloons

Gee, I wonder why the bank rate in Venezuela ballooned?:
"Venezuela's interbank overnight rate soared to as high as 120 percent after the central bank said it would halt some of its lending operations to financial institutions. The rate closed at 30 percent, up from an average daily rate of 8.7 percent since Aug. 1, traders said. Banco Central de Venezuela suspended its repurchase agreements Wednesday, three days after President Hugo Chavez prodded policymakers to stop acting as an 'oxygen tank' for banks that needed cash."
Can you say "economic collapse"?


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