( CNN ) -- In the wake of his decision to devalue Venezuela 's currency , President Hugo Chavez on Sunday said he would put the military on the streets to ensure that business owners do n't raise prices . Speaking on his weekly television program , `` Alo Presidente , '' Chavez railed against merchants who re-price their items in reaction to Friday 's announcement that the Venezuelan bolivar currency , which had been fixed at 2.15 to the U.S. dollar since 2005 , was devalued to 4.3 to the dollar . For food and medicine , Chavez announced a second fixed exchange rate for these `` necessity '' goods at 2.6 bolivares to the dollar . `` I want the national guard in the streets , with the people , to fight speculation , '' Chavez said , calling re-pricing a form of robbery . A devaluation makes foreign products relatively more expensive for domestic consumers , discouraging imports . Chavez showed a photograph in a newspaper of consumers in long lines over the weekend to buy goods , fearing that the sharp devaluation could result in higher prices . The president blamed such lines on `` teleterror , '' saying that opposition media outlets were fueling a panic . `` At this moment , there is absolutely no reason for anyone to raise the prices of anything , '' Chavez said . He encouraged people to publicly denounce businesses where prices increase and threatened to expropriate businesses that do . The government would transfer ownership of such businesses to the workers , Chavez said .
Venezuela President Hugo Chavez announces devaluation of country 's currency . Consumers rush to stores , fearing devaluation will cause higher prices . Chavez : `` There is absolutely no reason for anyone to raise the prices of anything '' Chavez threatens to expropriate businesses that raise prices .