Venezuela implements a new exchange control with only two rates – BBC World

Image copyright Getty

Image caption The new exchange system started operation Thursday consists of two rates, preferential and other floating.

The new Venezuelan currency system came into effect on Thursday, at a preferential rate “protected” or 10 bolivars per dollar and other floating that will start at 206 bolivars per dollar.

the vice president of Productive Economy of Venezuela, Miguel Perez Abad, had advanced on Wednesday the new amendment to the system of currency controls.

This reform had been announced by President Nicolas Maduro last February 17 in a series of measures to address the economic crisis facing the country.

the call rate “protected” DIPRO, is “intended only for goods and services, and remittances identified as priority”, said Perez Abad.

The floating, called DICOM (Type Supplemental Change) shall include sale transactions of foreign exchange generated by exports, the sale of hydrocarbons and basic industries.

Perez Abad said the government intends to “breaking” with the exchange scheme has governed the country in the last decade, arguing that the old mode “had its historic moment.”

in Venezuela there is a change control since 2003 , when it was implemented to try to curb inflation and capital flight.

the measure was implemented amid the crisis that followed the 2002 oil strike, paralyzing the oil industry driven by the opposition in protest to pressure the president Hugo Chavez to resign.

Passengers affected

people wishing to travel abroad will now have to pay a fee higher 1.500% to that applied so far.

Image copyright Reuters

Image caption Deputy Minister of Productive Economy of Venezuela, Miguel Perez Abad, said Wednesday that the government will honor “religiously” with their external debt payments.

In the above scheme, Venezuelans paid Bs.13 per dollar to earn foreign exchange for travel. With this new system will have to adapt to the floating exchange rate, DICOM, which started with a price of Bs.206.

For the requirement of currencies, “remains in force” the procedure laid down by the authorities, according to which applicants must have an account with a state bank and meet another set of requirements.

according to the official, responsible for designing this new scheme was President Maduro, to to create a “system of recruitment, investment and foreign exchange administration” with the capacity to “generate cash flow.”

subsidized medicines

Perez Abad announced the installation of DIPRO, the lowest rate in the market, intends to “protect and preserve the Venezuelan family, the productive sectors, especially food and pharmaceutical industry.”

Image copyright Reuters

Image caption The head of the creation of the new exchange system is President Nicolas Maduro, said the vice president of Productive Economy.

However, he said that although it will start at a price of Bs.10, will be adjusted gradually, considering the “social impact”.

the economic vice president reiterated that the Venezuelan government will fulfill “religiously” with its foreign debt payments and said the country has no solvency problems despite the current “economic emergency”.

the official said in an interview with Reuters already sent a proposal to China to improve conditions for repayment of loans that are canceled oil shipments.

he also said the government expected to offer between US $ 5,500 and US $ 7,000 million annually within the floating exchange rate system, although the most dollars will be offered in the prime rate.