VENEZUELA

The Superintendency of Banking Institutions (Sudeban) met on May 8 with representatives of public and private banks to propose a range of strategies for strengthening the Venezuelan financial system. These include a move to raise the daily debit card payment limit per sales outlet from USD 192 to USD 480. Also, the daily limit for bank transfers between natural persons will be increased from USD 192 to USD 1920, and between legal persons from USD 1,153 to USD 19,230.

Speaking about the measures, Banking Superintendent Antonio Morales also urged banking institutions to improve their technological capacity for rolling out alternative payment methods, including biometric payment, which is already available to Banco de Venezuela (BDV) customers. Furthermore, the agency reiterated its call for national banking institutions to reduce their reliance on international means of payment issuers in light of the prospect of U.S. sanctions targeting Venezuelan payment systems.

The measures aim to bring some respite to the Venezuelan financial system, which is being severely buffeted by the country’s economic and political crisis, by hyperinflation and by the 100% marginal reserve policy concerning the levels of funds that public and private banks must keep deposited in the BCV.