CARACAS, Tuesday November 20, 2012 | Update

Trade at Sitme estimated at its lowest

The traded amount on Monday was USD 21.1 million

Tuesday November 20, 2012  08:13 AM
While last November 7, the president of the Central Bank of Venezuela (BCV), Nelson Merentes, claimed for certain that trade through the Transaction System for Foreign Currency Denominated Securities (Sitme) has ranged from USD 40 million to USD 60 million, over the past few days it has been far away from this performance.

The report entitled Financial Summary notes that in three-week term, trade has dropped and "reached a trough in almost two years, precisely when the seasonal demand has marked an upward trend since August."

Through September, allocations through the Sitme surged 56%, thus offsetting the stagnation showed by the approvals of the Foreign Exchange Administration Commission (Cadivi). However, less availability of notes has made trade at Sitme narrower. On Monday, the Sitme dealt only USD 21.13 million, according to the BCV.

The report adds that, "the Sitme behavior has disconcerted the market, which expected the BCV to keep the pace of the supply, promptly replacing its stock of bonds. However, the question is more pressing when considering the high portfolio of assets denominated in foreign currency owned by the BCV. Ending August, it was around USD 10 billion and we deem that no changes have occurred since then."
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