VENEZUELA

Amidst rumors about a new plan to formalize dollar transactions in the country, on November 20 the Central Bank of Venezuela (BCV, in Spanish) issued a press release stating that it is working on the modernization of the payment system to strengthen the national currency, the Bolivar. In theory this rules out the possibility of formalizing the circulation of the Bolivar together with another foreign currency. The BCV is expected to provide more details on the modernized payment system in the coming days.

According to the institution, the new mechanism will improve the operating capacity of the financial system and will reduce credit and liquidity risks. It will also reinforce the security and efficiency levels of e-payment transactions and operations in Bolivars. The BCV added that “a greater use of the bolivar will be beneficial to the economy”.

It is worth remembering that in recent days the BCV has apparently been working with the banking sector on a plan to formalize dollar transactions in the country as of mid-2021.