BCV expands by 32% foreign currency supply through Sitme
Official exchange rate at VEB 4.30 per US dollar dims
Last week, the Central Bank of Venezuela disbursed through the Transaction System for Foreign Currency Denominated Securities (Sitme), the highest amount since the beginning of its operations in June 2009. In this way, the process under which the official exchange rate at VEB 4.30 per US dollar loses weight in the economy speeds up. In the meantime, the exchange rate of VEB 5.30 per US dollar gets stronger, resulting in devaluation in slow motion.
A report entitled "The Treasurer," prepared by think tank Síntesis Financiera, specifies that last week, Sitme traded USD 300.7 million. Ending June 22, the accrued amount for this year is USD 4.93 billion, a 32% hike relative to the same term in 2011.
At Sitme, businesses buy in Venezuelan bolivars foreign currency denominated securities that they subsequently sell abroad to get US dollars at the official exchange rate of VEB 5.30. For its part, the Foreign Exchange Administration Board (Cadivi) allocates foreign currency at VEB 4.30 per US dollar. However, no matter rising consumption, business cannot find more green notes through that cashier.
Official numbers indicate that in the first five months of 2012, Cadivi approved USD 9.4 billion for imports, that is, a drop of 3.5% relative to the same term in 2011.
The very early morning after the presidential election (April 15), both candidates requested the National Electoral Council (CNE) to conduct a full audit of the process: one, Henrique Capriles, because he asserts that the election results are different from the ones announced, and the other one, Nicolás Maduro, in order to clear any doubt regarding his victory, and to reinforce his political stance. Nevertheless, as it is already known, President Maduro changed his mind.