Venezuela to Create Foreign Exchange Mechanism Allowing Citizens Another Channel to Buy U.S. Dollars

by Colonel on March 18, 2013

“Venezuela will create a foreign exchange mechanism giving local people an additional channel to buy U.S. dollars, interim leader Nicolás Maduro said.

The new mechanism will run alongside the existing foreign exchange board, the Cadivi, which fixes the dollar at 6.3 bolívars, the acting president said late Monday. It will be opened Tuesday and funds will be available through it within a week, Mr. Maduro said on state television. He didn’t provide specific details, but people familiar with central bank deliberations last week said the government will allow dollars to be bought at rates much weaker than the fixed rate. …

The mechanism amounts to a major economic policy decision for Mr. Maduro. …

It will make dollars more available in the import-dependent economy, where limited access to hard currency has led to shortages of food and consumer goods.

” — Kejal Vias, Copyright 2013 Dow Jones & Company Inc.

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