As his latest bid to stop the crashing bolivar currency, Venezuela's President Hugo Chavez is all set to raid money changers and close websites listing exchange rates. It is feared that after the State's government moved to end speculation and stemmed the fall of the bolivar with new rules, the Venezuela's foreign exchange market will become even more paralyzed than before.

Where ever the bolivar is traded freely, the Central Bank will oversee them and all the transactions, in the market. This is has been ordered as a reform passed by the legislators. But the growth prospects and stoke inflation could be hurt by these new laws governing foreign exchange trading. These will hence, compromise the government's ability to service its debt.

After the bolivar lost 25 percent against the dollar this year, President Chavez endangered to close all the country's brokerages and financial trading houses.

Although the first of the few raids appeared to be limited to small illegal money changers in Caracas, yet, to this, Chavez said, ""The first raids should be starting, money changing houses, illegal dollar sales where they say they sell gold. We are battling a mafia... I said before, we are going to give them the mother of all blows".

Ahead of the September legislative elections, economic problems are hurting Chavez's ratings. It is due to the fact that this weak bolivar is raising the cost of consumer products in the import dependent country. It has thus hiked the inflation to 5% in the last month. Still, no matter what, the raids are on its speed to be carried out in the State.