NEW YORK, Jan 11 (Reuters) - The potential benefits of the devaluation that Venezuela ordered this weekend could be silenced by the political cycle and macroeconomic distortions existing in the country unless they are fiscal and monetary adjustments, said Monday the agency Fitch.
The government of President Hugo Chavez announced on Friday the devaluation of the bolivar and the implementation of a dual exchange rate system.
Given its high dependence on oil, government revenue would be the main beneficiaries of devaluation, Fitch said.
However, "improvements in income resulting from the devaluation would be channeled to boost spending on the eve of legislative elections in September," said analyst Erich Arispe, director of sovereign ratings at the agency.
((Editing by Inés Guzmán English, English Edition Desk +56 2 437 4417)) REUTERS
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