Changes to the currency system

In January 2014, the Government of the Bolivarian Republic of Venezuela made several changes to the currency system. These changes prevent Venezuelans from purchasing United States dollars for travel at the official fixed rate. Rather, purchases of travel and airline tickets and remittances are calculated through an alternate auction system called SICAD. SICAD will also be used for credit card purchases abroad, international investments, royalty payments, and insurance operations. As a result, virtually all private-sector currency transactions are now at the SICAD rate, which may fluctuate, while public-sector imports still have access to the official fixed rate.

• Type:

  • Treatment and operation (Capital transfer and FOREX)

• Industry:

  • Not industry specific

• Sources:

  • Venezolana de Televisión, En circulación Gaceta Oficial Nº 6.122 con providencias para adquisición de divisas, http://www.vtv.gob.ve/articulos/2014/01/24/en-circulacion-gaceta-oficial-no-6.122-con-providencias-para-adquisicion-de-divisas-7729.html, 24 Jan 2014
  • Gaceta Oficial de la República Bolivariana de Venezuela, Gaceta Oficial de la República Bolivariana de Venezuela No. 6.122 Extraordinario, http://www.tsj.gov.ve/gaceta_ext/enero/2312014/E-2312014-3895.pdf#page=1, 23 Jan 2014
  • Economist Intelligence Unit, Venezuela economy: Quick View - A devaluation in all but name, http://viewswire.eiu.com/index.asp?layout=VWArticleVW3&article_id=1331463917, 23 Jan 2014