The Executive branch enacted the repeal of the Illicit Exchanges Law August 6th, which was passed by the National Constituent Assembly (ANC) August 2nd. This law repeals the Illicit Exchanges Law (2015) to facilitate foreign exchange trading and commercial activities in order to promote private sector production and promote local and foreign investment. The measure was published in the Official Gazette No. 41,452 and has already came into force.

Specifically, the legislation amends the Central Bank of Venezuela Law article 138, by exempting the commercial activities and trade of foreign currency in the country from sanctions. In addition, it reduces the fines from 12 Tax Units (UT) (US$ 70) to 4 UT (US$ 23) in cases of acquisition of foreign currency through deception or other fraudulent mechanisms, and from 10 UT (US$ 58) to 3 UT (US$ 17) to those legal or natural persons who use the foreign currency obtained through official authorities for purposes other than those for which they were requested. In both cases, operations should not exceed US$ 10,000.

The enactment of this measure is part of the implementation of numerous public policies to combat the growing hyperinflation and severe economic problems that the country has been undergoing for more than a year. President Nicolás Maduro announced July 25th the postponement of the monetary reconversion, the reduction of five zeros to the new monetary cone (Bolívar Soberano) and the exemption from the Import Tax on goods and raw materials.