In more detail
The Notice established the prohibition to sell cash positions in foreign currency acquired through (i) the exchange desks; and (ii) those authorized to be un-accumulated in the exchange desks coming from retail exchange transactions, at an exchange rate higher than the exchange rate established for the latest exchange intervention by the Central Bank in the respective week.
The prohibition applies to foreign exchange operators that maintain unsold balances to the public or in interbank operations within the framework of the foreign currency sale operations that the Central Bank may carry out automatically with the Universal and Microfinancing Banks, pursuant to Article 1 of the Resolution.
Universal and Microfinancing Banks authorized as foreign exchange operators must:
- Adapt, facilitate and optimize the procedures related to these foreign exchange operations within a term no longer than 30 banking business days as of the issuance of the Notice (i.e., until 5 January 2022).
- Inform clients and users about the procedures and necessary requirements, and about the offices available for foreign currency purchases through exchange intervention.
Universal and Microfinancing Banks that fail to comply with the provisions set forth in the Notice will be sanctioned with up to 1% of their paid-in capital and reserves and any other measures that the Central Bank considers, in accordance with Articles 57 and 135 of the Central Bank Law.4
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1. Notice of the Central Bank of Venezuela, published on 18 November 2021.
2. Banking Institutions Law, Decree No. 1,402, Official Gazette No. 40,557, published on 8 December 2014.
3. Resolution No. 19-09-03, Official Gazette No. 41,742, published on 21 October 2019: "Article 1: The Venezuelan Central Bank, when it deems it pertinent, may automatically carry out foreign currency sale transactions with universal and microfinancing banks governed by the Decree with Rank, Value and Force of Law of Institutions of the Banking Sector and by special laws, by debiting from the single account held by the respective banking institutions in the Central Bank of Venezuela for the amount in bolivars equivalent to the foreign exchange transaction executed."
4. Law of the Central Bank of Venezuela, Decree No. 1,419, Official Gazette No. 6,155 Ext., published on 19 November 2014: "Article 57: Notwithstanding the imposition of any penalties that may be applicable, the Central Bank of Venezuela may adopt, in exercise of the discretionary powers established for the proper fulfillment of its purpose, and for the purpose of avoiding or counteracting the potential damages to the financial system that may be caused by the non-compliance with the provisions issued by the Institute in matters within its competence, all acts and measures it deems convenient, of strict observance by the banks and other financial institutions, including the establishment of interest rates and the suspension of their participation in the different operations and systems managed by the Issuing Institute." "Article 135: Persons subject to the regulations issued by the Central Bank of Venezuela, who violate the resolutions issued by the same in matters of interest rates, commissions, fees and/or surcharges, credit regulation and payment systems will be sanctioned with up to one percent (1%) of their paid-in capital and reserves. Likewise, they will be sanctioned with half a percent (0.5%) of their paid-in capital and reserves for lack of timely supplying the reports on their financial status or any of their operations that may be required, which may be increased by up to an additional one percent (1%), in case the falsehood of the information supplied is proven."
