Venezuela Continues Liberalizing Currency Market

  • 11:47 07 May 2019

Venezuela Continues Liberalizing Currency Market

Venezuela sticks to its policy of liberalizing its Currency market, since it has introduced absolutely free sale and purchase of foreign currencies in commercial banks, a document released by the Venezuelan Central Bank revealed on Tuesday, ONA reports citing Urdu Point Agency.

The Venezuelan government has established control over all the currency operations in the country since 2003. As a result, an illegal market of currency operations has taken shape in the country, with its exchange rate exceeding the official exchange rate by dozens times. Venezuela liberalized Dollar operations in August 2018 only. However, the official DICOM exchange system has remained in place. Its rate has only recently become equal to the so-called black market rate and has even exceeded it then.

Meanwhile, now any commercial bank will be granted right to sell and buy foreign currencies at its own rate, the document, signed by Sohail Hernandez, the first vice president of the Central Bank, said. The document did not mention the DICOM system.Apart from that, commercial banks will be obliged to provide to the Central Bank information about their weighted average rates once a day, and the Central Bank will determine its rates based on these reports and reveal them later.

Commercial banks will also be enabled to conduct card transfers and other kinds of transactions with clients. In fact, dollarization of the Venezuelan economy has been underway since the country officially legalized foreign currency turnover. Hotels, restaurants and shops across the country have started, gradually, to accept US Dollars officially amid lack of cash bolivars.