Ecoanalítica does not fear immediate impact of falling oil prices

The drop of oil prices lately recorded will not shake Venezuela all of a sudden.

In the opinion of Asdrúbal Oliveros, CEO of think tank Ecoanalítica, it is early to envisage the events.

He believes that the main problem will likely mirror in any restriction from the Foreign Exchange Administration Board (Cadivi) regarding the allocation of foreign currency for imports, particularly because operating reserves are at their lowest.

However, he cautioned that should oil prices continue diving after the presidential election of October 7, there will be "much vulnerability" if President Hugo Chávez is reelected.

Oliveros did not rule out up-regulation of the official exchange rate from VEB 4.30 to VEB 7 per USD.

Add to this, according to the CEO, a cut in public spending.

The Ecoanalítica Executive Director anticipates that in August-September, the Central Bank of Venezuela (BCV) and state-run oil holding Petróleos de Venezuela (Pdvsa) will make another issue of private bonds to feed the Transaction System for Foreign Currency Denominated Securities (Sitme).