CARACAS, Wednesday February 11, 2015 | Update

Data on the new forex system in Venezuela

Venezuelan authorities explained on Tuesday the operation of the new foreign exchange system in Venezuela. El Universal elaborates on the more important details of the system. The new exchange agreement, laying down the terms of the operations, is expected to be published soon

Three foreign exchange schemes would be in force (File photo)
Wednesday February 11, 2015  11:09 AM
1. How many foreign exchange rates will be in force in the country? 
The government informed that three foreign exchange schemes would be in force: the National Center for Foreign Trade (Cencoex), with a foreign exchange rate of VEB 6.30 per US dollar; the Ancillary Foreign Currency Administration System (Sicad), with a foreign exchange rate of 12 per US dollar, which could shift according to the needs of the economy, and the newly created Foreign Exchange Marginal System (Simadi), with a with floating rate set by the market itself.

2. Has the Sicad 2 disappeared, along with the possibility by individuals of buying foreign currency in that market?
The authorities pointed out that Sicad 1 and 2 would merge into a single system, with a foreign exchange rate starting at VEB 12 per US dollar, which would gradually be adjusted. They did not explain what will happen to the purchase mechanism designed for individuals; they only underscored that the system will meet the needs of the productive apparatus.

3. What happened to the foreign currency quota for foreign travel?
It will remain at USD 3,000 maximum per year, at a foreign exchange rate of the Sicad system (VEB 12 per US dollar).

4. What about the foreign currency quota for electronic purchases?
It will stand at USD 300 per year, at the Sicad rate.

5. What happened to foreign currency sold for international students?
The Minister of Finance, Rodolfo Marco Torres, did not provide details. He did mention that foreign remittances would be paid at the foreign exchange rate traded at Simadi.

6. What foreign exchange rate will be used to pay international air tickets?
The authorities did not elaborate on this matter.

7. At which foreign exchange rate will the government pay debts owed to the industry?
During the press conference, the Minister of Finance did not discuss the issue of the debt owed to industries based in the country, he only stressed the government would honor both its local and international debt commitments.

8. How will the Simadi operate?
The authorities said that "both individuals and companies can get access to (that system)." A local bank account in US dollars will be required to buy foreign currency. There will be a floating foreign exchange rate set by the market. Further details will be provided when the relevant exchange agreement is published in the Official Gazette.

Translated by Andreína Trujillo