Reuters: Venezuela's President Hugo Chavez said on Friday the government was devaluing the bolivar currency, with two rates of 2.6 and 4.3 to the dollar.

The bolivar has been fixed at 2.15 to the dollar since 2005, but is widely considered to be overvalued and trades on a parallel black market at way over that rate.

Facing a recession and galloping inflation in the 11th year of his presidency, Chavez has been pressured by business for a devaluation in the South American oil-producer.

"All this has various objectives-boosting the productive economy, strengthening the Venezuelan economy, braking imports that are not strictly necessary, and stimulating export policy," Chavez said in a televised speech. He said the lower exchange rates would benefit sectors such as food and health.

The devaluation is likely to boost the state's bolivar revenues from oil and help local exporters, but add pressure on prices, which soared 25 percent in 2009, the highest in the Americas. Chavez named the second rate, at 4.3, the "petro-dollar."

Chavez, whose "21st century socialism" policies have sharply polarized Venezuela's 28 million people, faces an important National Assembly election in 2010 where he hopes to stave off an opposition effort to overturn his majority.

The devaluation could stoke social tensions and weigh on his poll ratings, presently at around 50%, though subsidies and some free services introduced by Chavez may limit the impact.