Petrodollars to raise forex supply in Venezuela by USD 10 million per day
Venezuela's domestic market is in need of higher US dollar supply
By doing this, the BCV will be able to sell more US dollars to companies upon authorization granted by the Foreign Exchange Administration Commission (Cadivi). However, will the increase be enough to put and end to the shortage of US dollars on the market?
It all seems that although the move is a pressure relief valve, a lot more is required. Think tank Ecoanalítica's CEO Luis Saboin explained that upon the implementation of the decision, Cadivi would be able to increase its daily US dollar sales oriented to imports, traveling, and remittances by USD 10 million. However, this is certainly not a significant change.
If Pdvsa fully transfers to the BCV the expected amount of money, US dollars for imports would increase by 9% this year. However, since imports continue growing, it may not be sufficient.
In 2012, imports jumped to USD 56.35 billion, the highest figure in 16 years, and amounted to 59% of Venezuelan export revenue.
Via Cadivi, companies purchase dollars to import basic commodities such as food and drugs. Companies importing other products rely on the Transaction System for Foreign Currency Denominated Securities (Sitme), which sells USD dollars through bonds.
Notwithstanding, a sharp drop in the daily sale of US dollars via Sitme was reported late in 2012, from USD 44 million per day in January-November to USD 15 million per day in December.
Translated by Jhean Cabrera
At least 30 years had passed since his last visit to Caracas. He had little time to become an expert on moving about in such a complicated metropolis. Whether it was hopping on the subway, finding directions, playing waiting games at public agencies, eating whatever he could and sleeping wherever he could, Guerrero senior had been wandering the streets for 60 days, and thanks to "the boys" he found some sort of relief by way of helping hands.