Venezuela: The Venezuelan Central Bank allows authorized banking institutions to sell foreign currencies in cash

01 Mar 2020    1 minute read
Banking Banks Banking Regulations Banking Industry Financial Institutions Financial Regulations Financial Industry

In brief

The Venezuelan Central Bank (VCB) issued a notice on 13 March 2020 (“Notice”) whereby it allows authorized banking institutions to sell foreign currencies in cash, under Exchange Agreement No. 1.1

Contents

The Notice entered into force in 13 March 2020.
 
The Notice’s most important aspects are:

  1. Subjects. The Notice applies  to universal banks and exchange desks subject to the Decree with Rank, Value and Force of Law of Banking Sector Institutions2 and authorized as intermediaries to carry out retail market exchange operations.
     
  2. Authorizations. The Notice establishes that the mentioned subjects must apply for an authorization before the VCB’s Exchange Operations Management to sell foreign currencies in cash derived from retail market exchange operations.
     
  3. Retail market exchange operations. Retail market exchange operations are sale operations of foreign currencies for quantities equal or less than 8,500 Euros, or its equivalent in another foreign currency.3 
1 V. Precedents and related information: Baker McKenzie, “New Exchange Agreement No. 1 in Venezuela”, in https://bakerxchange.com/rv/ff0040627fadae2cc7c74b943b14ff6c16/p=8370477.
2 V. Decree with Rank, Value and Force of Banking Sector Institutions (Official Gazette No. 40,557 of 8 December 2014).
3 V. Exchange Agreement No. 1 (Official Gazette No. 6,405 Ext. of 7 September 2018). Article 19: “Persons and entities interested in carrying out exchange operations for quantities equal or less than eight thousand five hundred Euros (€8,500) or its equivalent in another foreign currency, through an operation, in cash, cheques, wire transfers, accreditations, they may do so to the authorized exchange operators referred to in this article. The exchange rate of reference stated in article 9 of this Exchange Agreement, corresponding to the day immediately before the date of the operation, will be the applicable rate for the sale of foreign currencies in the retail exchange market. Universal banks and exchange bureaus under the Decree with Rank, Value and Force of Law of Banking Sector Institutions may carry out retail market operations referred to in this article as specialized intermediaries."

Spanish Version.
Contact Information
Jesus Davila
Partner
Caracas
Jesus.Davila@bakermckenzie.com
Maria Celis
Partner
Caracas
Maria.Celis@bakermckenzie.com
Marie Roschelle Quintero
Associate
Caracas
MarieRoschelle.Quintero@bakermckenzie.com

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