02 de febrero de 2017 13:06 PM
Actualizado el 02 de febrero de 2017 13:16 PM
The availability of foreign currency from the Central Bank of Venezuelan (BCV) to support the exchange system on the Venezuela-Colombia border, through of a network of exchange houses in border states Táchira and Zulia, and very soon in Santa Elena de Uairén, bordering with Brazil, will continue to be restricted. As a result, the impact of such strategy on the parallel market "no to be significant," the economic firm Torino Capital analyzed on Monday.
A plan for the establishment and operation of exchange houses for the purchase of dollars with bolivars for their exchange to Colombian pesos started operations on January 16, in order to boost the Colombian-Venezuelan Border Economic Development Zone and to fight the mafias existing on the border, Venezuela’s President Maduro reported.
Economists of think tank Torino are not convinced that the system can be sustainable in the course of time with the necessary muscle.
“In this case, given the significant potential arbitrage opportunities captured by the nearly 5 to 1 differential between the parallel and official rate, we would expect demand levels to grow as participants become accustomed to using the system and overcoming existing administrative restrictions. Yet it also unlikely that in the context of the significant limitations on the government’s availability of foreign exchange, authorities would choose to devote a significant fraction of FX earnings to maintaining this system,” the text points out.