CARACAS, Jan 10 (Reuters) - Venezuela's Hugo Chavez ordered soldiers to seek out businesses that raise prices after a sharp devaluation of the bolivar currency last week, saying he will expropriate firms that engage in price gouging.
Chavez also created a $1 billion fund to jump-start the recession-hit, oil-reliant economy before elections in September when the opposition hopes to strip him of a parliamentary majority.
"Right now, there is absolutely no reason for anybody to be raising prices of absolutely anything," Chavez said on his weekly TV show, two days after announcing a dual exchange system for the weakened currency, which had been on a fixed exchange rate.
"I want the National Guard on the streets with the people to fight against speculation," Chavez said. "Publicly denounce the speculator and we will intervene in any business of any size."
The socialist Chavez has given the state a hefty role in managing the economy. During his 11 years in office he has nationalized most heavy industries and expropriated large farms. Business and finance are tightly regulated.
He says the devaluation will help make Venezuelan companies more competitive but warned that the government will take over shops and give them to workers if price rises are uncovered.
Chavez gave out phone numbers during the broadcast to report price gouging and asked his defense minister to prepare an "offensive" against the practice.
