The currency exchange tables will be enabled as of May 2, 2019, allowing foreign currency purchase transactions.
In the Official Gazette No. 41,624 of the Bolivarian Republic of Venezuela dated May 2, 2019, was published the Resolution No. 19-05-01 of the Venezuelan Central Bank (“BCV” for tis Spanish acronyms) also dated May 2, 2019, through which currency exchange tables are enabled (the “Resolution”). Among its most relevant aspects are:
- The banking institutions authorized to act as exchange operators may agree through their currency exchange tables, between clients of the institution or through inter-bank transactions, operations of purchase and sale of foreign currency by natural or legal persons of the private sector, international organizations, diplomatic representations, consulates, their officials and those foreign officials of international organizations duly accredited before the national government.
- The agreements of these operations will be executed during each working day, without the need for the participants to record an operation that corresponds to a specific purchase or sale price. Banking institutions must publish the average exchange rate resulting from the transactions agreed at the end of each day, with an indication of the assessed volume. Likewise, such banking institutions must inform the operations daily to the BCV.
- The BCV will publish daily on its website the average exchange rate of these operations, which will be the exchange rate referred to in article 9 of Exchange Agreement No. 1.
- Those interested in buying and selling currencies should go, on any banking business day, directly to the exchange operators or by use of the electronic banking instruments arranged for that purpose, under the terms and conditions established for such operations. These interested parties may submit their offers (buy or sell) without any restriction, complying with the following requirements:
- Have satisfactorily fulfilled the due diligence processes before the exchange operator; and
- Be a client of the respective banking institution.
- The settlement of foreign exchange transactions will be made through the foreign exchange operators in the terms and conditions agreed with their clients.
- The reports produced by the exchange tables will be considered firm, definitive and irrevocable, therefore, they must be transmitted to the BCV on each day only for the purpose of determining and publishing the average exchange rate. The banking institutions will be responsible for the liquidation/settlement of the agreed foreign exchange operation in the terms that are convenient for that purpose.
- Foreign exchange bureaus must carry out through the exchange tables the sale of positions in foreign currencies acquired in accordance with Foreign Exchange Agreement No. 1 that could not be applied to meet foreign currency demand by their clients and/or users in the terms set forth in the aforementioned exchange agreement.
The Resolution entered into force on May 2, 2019.
This legal report presents a general description of relevant aspects of the Resolution and does not constitute a legal opinion aimed at addressing a specific situation. In case of doubts or comments or for more information, contact InterJuris Abogados (www.interjuris.com) +58 (212) 750 1200.