The Central Bank of Venezuela (BCV) increased January 29 from 60% to 100% the marginal bank reserve of the new funds that the country’s public and private banks must keep deposited in the BCV. Likewise, the ordinary reserve goes from 31% to 57%. This measure is set to come into force February 11. Meanwhile, as of January 29 the banking institution will intervene in the exchange market to maintain the exchange rate at around USD 1 = Bs.S 3.300. Finally, the BCV has increased the maximum limits of the commissions that banking institutions and means of payment issuers can charge users that carry out certain operations. The measure is set to enter into force February 2.
The BCV introduces or withdraws the necessary Sovereign Bolivars from the banking system on a weekly basis to keep the exchange rate stable. By implementing this measure, along with the increase in bank reserves, the Venezuelan government seeks to control hyperinflation and kickstart economic growth. In addition, the Executive branch is set to recover the losses generated from the repeal of the special bank reserve, which came into force last January 22.
Finally, the main operations affected by the BCV resolution are:
- Debit cards: the replacement due to loss, theft or deterioration and the issuance of electronic cards with chip technology increase from USD 0.009 to USD 0.051.
- Credit cards: The issuance and the replacement of credit cards (depending on their category) increase from USD 0.046 to USD 0.165 to USD 0.245 to USD 0.875.
- Operations at the banks’ ATMs: Consultation, rejection and transfer increase from USD 0.002 to USD 0.012.
- Operations at other banks’ ATMs: Consultation, rejection and transfer increase from USD 0.003 to USD 0.015.