Venezuela's banks will offer access to the forex market

Venezuela has been struggling with the economic crisis for a long time. The actions of the government and the central bank (through monetary policy) try to calm down hyperinflation, which is strongly felt by the economy. The actions of the authorities are also focused on combating the negative effects of the current economic situation of the country. The central bank of Venezuela, in an official statement, said it would limit its control over currency exchanges. Among other things, it will allow banks operating in Venezuela at the beginning to open investment platforms. They are designed to enable trading in global currencies.

Be sure to read: Venezuela is officially under regulation [Petro]

Forex is available this Tuesday

Bloomberg announced that the currency exchange exchange is to be available in Venezuela next Tuesday. Not only private individuals will be able to use the trading platforms. In an official statement, Venezuela's central bank also mentioned companies. The decision states that currencies can be bought and sold in state and private banks. Therefore, financial institutions will be able to legally buy and sell them.

A small turnover

Venezuela, due to deep crisis, generates a very small volume in the forex market. According to data from bank reports, the turnover generated from the Dicon system (supports foreign exchange market transactions) amounted to USD 32.

Since 2014, the state has been plunged into a deep political and economic crisis. When oil prices began to drop drastically, the government of President Maduro began to look for solutions that would stop them. The authorities decided to limit access to the foreign exchange market. The complete suspension of trading on forex platforms took place only after the US government announced the possibility of imposing sanctions. Venezuela's central bank has officially announced a halt to play in this market.

Black market

At the peak of hyperinflation (reaching 800%), where in Venezuela's currency, in a quick conversion lost its value by half, exactly every 46 day, the black market developed strongly. The stable US dollar enjoyed the main interest. Discrepancies between the officially published by the authorities and the real rate were drastically large. Therefore, restoring freedom in currency exchange was also aimed at reducing the black market.