ESPACIO PUBLICITARIO
CARACAS, Tuesday September 24, 2013 | Update
 
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Venezuelan swap market expected by 2014

Datanálisis thinks resistance to devaluation must be overcome inside the Government

Danatálisis director: the Executive Office does not want to see unpopular measures (File photo)
EL UNIVERSAL
Tuesday September 24, 2013  04:59 PM
During a forum on the social, political and economic environment in Venezuela, hosted by the Venezuelan Construction Chamber, research firm Datanálisis Director Luis Vicente León stressed that troubles to buy US dollars in the Venezuelan economy would extend to at least the first quarter of 2014 as some time is needed to complete the technical design of and overcome political resistance relative to the new forex system to be implemented in the days ahead.

León said it would take from two to six months to complete a process that not only includes the general layout of the mechanism, but also making the legal reforms that shall be approved in Parliament, for instance, the Law against Related Exchange Offenses.

Datanálisis has suggested overcoming "ideological resistance" including that of Planning Minister Jorge Giordani, who along with many others believe the forex market shall be governed by foreign exchange controls and models such as the Foreign Exchange Administration Commission (Cadivi) and the Ancillary Foreign Currency Administration System (Sicad), therefore increasing State intervention in the economy. 

Further, León explained that "decision making in the economic area with a political impact in the short term is very difficult. The Government does not want to be punished by the population due to a significant devaluation (prior to the local election) and then being held accountable for both inflation and shortage, which will take place anyway, as devaluation will not solve them."
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