The end is coming...

From KA's Blog:

"2007

As oil revenue levels off, the fiscal stimulus will begin to wane. Combined with the uncertain legal and regulatory regime and the maintenance of distortionary price and exchange controls, this will result in a slowdown of private investment and GDP growth from 2007. The combination of an expansionary fiscal policy and captive liquidity created by exchange controls is increasing inflationary pressures, despite price controls, the sale of subsidised imports by the government and an exchange-rate peg. In this context, the exchange rate is unlikely to be adjusted from its current level of Bs2,150:US$1 in 2007 as the government tries to anchor inflation. The external surplus will remain large, but reserves growth will be kept in check by transfer of US dollars to the national development fund."