Central Bank of Venezuela Injects $50 Million into Foreign Exchange Market

The Central Bank of Venezuela (BCV) has injected, once more, around $50 million into the foreign exchange market in order to curb the rise of the parallel dollar as well as inflation.

At present, the exchange rate applied by the BCV is 4.37 bolivars per dollar, the latter having a 1.30% increase compared to the previous 4.32 price.

Since October, specifically since the new monetary reconversion began, the BCV has adopted the measure of injecting dollars into the market in order to contain the dollar black market.

In the days prior to the entry into force of the new monetary reconversion, the parallel dollar market reached 5 million bolivars exchange rate (5 bolivars after reconversion). Hence, the Central Bank decided to inject $50 million into the market on October 4.

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Through this measure carried out by the BCV, the price of dollar has remained stable, even closing at 4.47 bolivars per dollar.

Throughout October, the BCV has injected more dollars into the official market, operated mainly through the exchange bureaus, in five interventions that took place between October 5 and 27.

Now, at the start of November, banks have received $50 million to increase the market supply and to sell it at a lower cost than that of the parallel dollar market.

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Days prior to this new injection, the parallel dollar had registered a daily rebound of approximately 10 points in each update, but this has now been gradually decreasing.

Looking ahead at the November 21 elections and the Christmas season that has already been inaugurated in Venezuela, some opposition factions are betting that the BCV’s strategy will collide with a limited availability of dollars in reserves.

 

Featured image: Central Bank of Venezuela. File photo 

(RedRadioVE) by Ana Perdigón

Translation: Orinoco Tribune

OT/GMS/SC

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Ana Perdigón
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