Private bank officials involved in the trading, who spoke on condition of anonymity because they weren't authorized to comment publicly

Venezuelan officials launched a new bond-trading system Wednesday that is meant to clamp down on speculation in the country's controlled currency, setting a range of prices that makes dollars far cheaper than they were before trading was halted last month.

The Central Bank set a band of permitted prices for bond trades that private bank officials said translated into exchange rates of between 4.3 bolivars and 5.3 bolivars to the dollar. The rate had soared above 8 to the dollar under the old system last month.

Most of the transactions were near 5.3 bolivars to the dollar, Central Bank president Nelson Merentes said.

The first day of trading involved about $17 million in transactions and there were plenty of bonds available to meet demand, Merentes told Union Radio. Demand is likely to grow in coming days as Venezuelans and businesses become familiar with the system, he said.

Economists projected a rush of demand because the three-week halt in trading left many businesses starved for dollars.

President Hugo Chavez has accused speculative trading of undermining the currency's value under the earlier system, which was close to a free-market rate for the bolivar.

Chavez's government maintains currency-exchange controls and sets official exchange rates. It makes available only a limited amount of dollars at the official rates of 2.6 bolivars per dollar for high-priority goods, and 4.3 to the greenback for nonessential goods — forcing many businesses to trade in dollar-denominated bonds to pay for imports.

The Central Bank said its band of permitted prices for bond trades is to be updated daily and posted on its website. Private bank officials said the range of rates could vary in the coming days.

Fourteen banks were involved in trading Wednesday, and 26 others are expected to join Thursday, said Jose Grasso, who heads the country's banking association.

Banks received draft instructions laying out tentative limits for the monthly amounts that may be traded per individual or company, Grasso told TV station Globovision, without giving details.

Private bank officials involved in the trading, who spoke on condition of anonymity because they weren't authorized to comment publicly, said the rules limit companies to $300,000 a month, and individuals to $5,000 a year — with some exceptions for students and payments for health care or professional services.