BCV: New Exchange Rate System in Venezuela

The Central Bank of Venezuela (BCV) recently approved a new exchange rate system through resolution 19 -05 – 01, which specifies that the public and private banks of the country authorized as exchange operators can carry out purchase and sale transactions of hard currencies through “exchange tables”.

According to the resolution, the agreements include inter-bank transactions (a new platform put in place in the month of February), transactions between legal persons (companies) and private persons of the private sector, international organizations, diplomatic offices and their officials.

“Disregarding the implementation of a new exchange rate platform implemented since the month of February 2019 (inter-bank), there still are restrictions to openly and easily buy and sell hard currencies and that keep the black market alive, this move seems to be directed to completely confront the black market but it will depend on the correct implementation of this decision”, said an economic expert to OT.

Here are the key points of that resolution:

Article 1.- Banks may agree, through their currency exchange tables, between clients of that institution, or in inter-bank transactions, purchase and sell operations of foreign currencies by natural and legal persons of the private sector (…) Banking institutions must publish the weighted average exchange rate.

Article 3.- The BCV will publish the exchange rate on its website on a daily basis.

Article 4.- The liquidation of the operations of sale of foreign currencies that result will be done through the currency exchange operators, they will be able to do it without any restriction.

Article 6.- The requirements are: To have satisfactorily complied with the processes emanated by the currency exchange operator and to be a client of the banking institution in the financial system.

Source URL: La IguanaTV with OT content

Translated by JRE\EF