14 January 2014
The Exchange Agreement N° 24 entered into between the Central Bank of Venezuela (“BCV”) and the Ministry of Finance was published in the Official Gazette N° 40.324 dated December 30, 2013. A summary of the relevant provisions below:
- The exchange rate for the purchase of foreign currency by the BCV shall be the one set in the last foreign currency allocation performed through the Complementary System for the Administration of Foreign Currency (SICAD for its Spanish acronym), diminished in 0,25%.
- This rate is applicable to the sale of foreign currency by:
- PDVSA and its affiliates, as well as Mixed Companies incorporated in accordance with the Hydrocarbons Law, when selling foreign currency arising from activities different from the exportation or sell of hydrocarbons (i.e. cash calls)
- Service companies integrating the Conglomerado Nacional Industrial Petroler
- Companies receiving foreign currency proceeds from mining exports.
- The above mentioned companies will have to deliver foreign currency to PDVSA, and PDVSA will perform the exchange operations on behalf of the companies.
- The exchange rate applicable to the sale of foreign currency by the BCV to the above mentioned companies shall be the one set in the last foreign currency allocation performed through SICAD.
- The operations of purchase of gold by the BCV will be made at the exchange rate set in the last foreign currency allocation performed through SICAD.
- Goods or intangibles assets as well as the liabilities denominated in foreign currency of the companies intervening in the gold sector will have to be registered in the accounting books at the exchange rate set in the last foreign currency allocation performed through SICAD.
- The exchange rate set in allocations of foreign currency through SICAD will be published at the BCV official webpage.
Please contact Gabriela Rachadell gabriela.rachadell@dlawordpress-1435814-5364031.cloudwaysapps.com or María Cecilia Rachadell [email protected] in case you have any doubts or comments.