The Venezuelan Supreme Court denied a request for an injunction to declare the exchange controls illegal. Basically, the current Court ruled in Dec. 2001 that only the National Assembly could decide to impose controls referring to a suit brought in front of the Court at the time of Caldera’s exchange controls in 1994-1995 and 1996.
Interestingly, the Court did declare that the matter was “urgent” and that certain steps would not be needed and the Court would consider the casde within 20 days. Reportedly, the Court is concerned that if it declares the controls illegal there could be capital flight. Thus, once again, the Court is going beyond its reach and considering not what the law says but the politics and implications of its decisions which is not its Constitutional mandate. If it is illegal, it is illegal and if there is capital flight, so be it. That’s the law!
The Devil's Excrement 
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