CARACAS, Wednesday February 27, 2013 | Update

Venezuelan gov't investigates the recipients of US dollars through Sitme

Bank of America forecasts a system to sell US dollars in cash

Domestic economy in need of US dollars (File photo)
Wednesday February 27, 2013  02:51 PM
In an attempt to find irregularities, the Venezuelan Government has undertaken a series of audits in companies that received US dollars via the recently eliminated Transaction System for Foreign Currency Denominated Securities (Sitme).

The system allowed companies to buy US dollars through a bond sale market. According to the regulations, only the importers of products not listed as priority goods could apply for US dollars at Sitme. As for the importers of listed products, the request for foreign currency should be made at the Foreign Exchange Administration Commission (Cadivi).

Auditors currently seek companies that requested US dollars from Sitme to import priority goods, as well as companies that eventually did not import the products for which they were sold US dollars.

The authorities are also probing importers which sought US dollars via Sitme after having been refused a certificate stating that the products to be imported were not produced at home. Is that illegal? There are no regulations for such matter and some banks approved applications that could now be challenged.

US dollars delivered via Cadivi are also subject to auditing.

Sources of the central bank reckon that the Government may come up with a substitute of Sitme and measures to relax the US dollar sale.

Likewise, a report compiled by Bank of America forecasts a system whereby US dollars in cash may be sold to enterprises.

Translated by Jhean Cabrera
Venezuelan metallurgic industries stay alert

According to inner surveys performed by the Venezuelan Association of Metallurgical and Mining Industries (AIMM), where 160 metallurgic companies were taken into consideration, 90% of the companies members of this association are "distressed because of their existence or survival in the short term," stated Manuel Eseverri, president of this association.

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