Money supply in circulation expanded in the month up to September 26 to BsF.168.5 billion amid crisis

Caracas Daily Journal (Jeremy Morgan): Money supply in circulation in the economy expanded in the month up to September 26 to BsF.168.5 billion, marking an increase of 1.3 percent on the month before amid concern about the inflationary outlook for the country.

Orthodox economists see money supply growth as a cause of inflation, not least because with more money floating around the economy people have more cash in their wallets. This, it's said, gives consumers the ability to pay over the odds if they wish, and all the more in times of shortages.

The National Economic Council (CEN) warned earlier this week that the global financial crisis could lead to renewed shortages in Venezuela. This has sparked renewed concern that key items of food may be about to vanish from shop shelves all over again, as they did earlier this year.

• Business leaders say the turmoil in financial markets could limit the country's ability to pay for imports. Venezuela is unofficially estimated to import between half and 60 percent of its food needs.

Questions hover over the intentions of the Foreign Exchange Administration Commission (Cadivi) in the wake of the crash caused by the collapse of investment bankers Lehman Brothers in the United States last month.

Officials signaled earlier this year that currency controls would be eased - but not eliminated, which the business community has long wanted – on the grounds that the economy was now sufficiently strong to finance a larger flow of imports.

Latest figures from Cadivi show that the value of hard currency permits issued by the commission totaled $29.99 billion during the first nine months of this year, marking an increase of 20.4 percent on the corresponding period of 2007.

Despite the greater outflow of hard currency, the official reserves continue to rise, and now stand at $39.5 billion, according to figures from the central bank.