Venezuelan swap market expected by 2014
Datanálisis thinks resistance to devaluation must be overcome inside the Government
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."
Around 1.5 million Venezuelans have decided to emigrate in search of a better future for their families. The figure accounts to between 4% and 6% of the overall population. Approximately 88% of these expatriates have made up their mind to emigrate over the last 15 years.