INTERNATIONAL

Venezuela Devalues Currency by 41.4%: A large devaluation had been expected as part of negotiations with the International Monetary Fund to secure an estimated $7.5-billion loan package. Government officials said the bolivar will be reduced to 290 per dollar, from the 170 per dollar the government imposed in June 1994. It was unclear whether the devaluation would take effect immediately or after the measures were published in the official gazette. The devaluation ends a freeze on the bolivar imposed to try to halt capital flight and end daily devaluations. But inflation grew by nearly 100% since the controls were implemented 17 months ago, creating pressure on the exchange rate, and foreign reserves and foreign investment plummeted. The announcement purposely coincided with a bank and stock exchange holiday.