Central Bank of Venezuela
The Central Bank of Venezuela (Spanish: Banco Central de Venezuela, BCV) is the central bank of Venezuela. It maintains a fixed exchange rate for the Venezuelan bolívar and since 1996 is the governing agent of the Clearing House System (including an automated clearing house).
Actual laws[edit source | edit]
By law, the Central Bank of Venezuela is autonomous to formulate and exercise policies in its field of competence and it performs its duties and functions in coordination with the general economic policy. The Constitution grants the central bank autonomy to outline and implement the policies. However, as of 2016, reforms deemed unconstitutional by some effectively nullified the BCV's independent status.
The export, import or trade of Venezuelan or foreign currency are subject to the regulations established by the BCV, including the departure or arrival of coin and notes made by another countries by BCV's express order.
Foreign Reserves[edit source | edit]
Since its inception in the late 1930s, the BCV was given a clear mandate to control the monetary policy of the nation, centralizing the operations of a handful of private banks that used to mint the Venezuelan currency, the Bolivar. For almost 50 years the BCV managed to sustain a remarkable strong currency, with inflation rates hovering on the 2-3% mark during that period. However, since the oil glut of the 1980s and the first serious devaluation of the currency in 1983 (known in Venezuela as 'Viernes Negro') the Bolivar has been plagued with chronic instability, mistrust and declining value that has been fed by the continued rise in inflation, topping an estimate for 2018 of one million percent (1.000.000%). Most of Foreign Reserves are in gold bars in Germany (almost 64%).
Sitme[edit source | edit]
The Central Bank is able to issue bonds through the "SITME" market. In 2012, it was reported that $44 million worth of bonds were purchased through SITME in a single day for Petroleos de Venezuela SA.
Sicad[edit source | edit]
Until 2015 an "Ancillary Foreign Currency Administration System" or Sicad operated as an alternative FX system for businesses and individuals. Given its ineffectiveness and the continued rise of the parallel -black market- exchange rate the system was discontinued in favor of the "Complementary Currency System", known for its Spanish acronym DICOM.
Hyperinflation[edit source | edit]
Since December 2017 Venezuela the CPI has presented a behavior that fits most of the definitions for hyperinflation, the first in the country's history. The bank, subject to a strong control by the Executive Branch of the Venezuelan Government, has ceased the publication of metrics such as the CPI and Gross Domestic Product variation, creating a vacuum that has left investors and the public on a general state of disarray.
Controversy[edit source | edit]
Sanctions[edit source | edit]
Presidents of the Central Bank of Venezuela[edit source | edit]
|President||Took office||Left office||Notes|
|Jesús Herrera Mendoza||1940||1948|||
|Carlos Mendoza Goiticoa||1948||1953|||
|Aurelio Arreaza Arreaza||1953||1958|||
|Alfredo Machado Gómez||1961||1968|||
|Benito Raúl Losada||1968||1971|||
|Benito Raúl Losada||1976||1979|||
|Carlos Rafael Silva||1979||1981|||
|Leopoldo Díaz Bruzual||1981||1984|||
|Benito Raúl Losada||1984||1986|||
|Mauricio García Araujo||1987||1989|||
|Pedro R. Tinoco||1989||1992|||
|Miguel Rodríguez Fandeo||1992|||
|Ruth de Krivoy||1992||1994|||
|Antonio Casas González||1994||1999|||
|Diego Luis Castellanos||2000||2005|||
|Gastón Parra Luzardo||2005||2009|||
|Ramón Augusto Lobo Moreno||2017||2018|||
|Calixto Ortega Sánchez||2018||present|
See also[edit source | edit]
References[edit source | edit]
- Reyes-Torres, Eddy (22 August 1996). "Automated Clearing House". Central Bank of Venezuela. Archived from the original on 15 June 2002. Retrieved 27 January 2018.
Similarly, in those Clearing Houses in which automated mechanisms of clearing or exchange of checks cannot be established, the use of diskettes may be dispensed with or substituted by some other mean.
- Maduro-Moros, Nicolas (30 December 2015). "DECREE WITH THE RANK, VALUE AND FORCE OF LAW OF THE CENTRAL BANK OF VENEZUELA" (PDF). Central Bank of Venezuela. Archived from the original (pdf) on 27 January 2018. Retrieved 27 January 2018.
- "Venezuela central bank curbs fuel fears over hyperinflation". Financial Times. Retrieved 4 January 2019.
- Serpa, Ana-Carolina (7 January 2016). "New Law of the Venezuelan Central Bank". Norton Rose Fulbright, Global law firm. Archived from the original on 19 September 2016. Retrieved 27 January 2018.
The New BCV Law provides a series of reforms among which we would highlight the following: Authorization for the arrival and departure from the territory of monetary species representatives of the bolivar
- Pons, Corina (5 February 2016). "Exclusive: Venezuela central bank in talks with Deutsche Bank on gold swap". Reuters. Archived from the original on 27 January 2018. Retrieved 27 January 2018.
Around 64 percent of Venezuela’s $15.4 billion in foreign reserves are held in gold bars, which limits President Nicolas Maduro’s government’s ability to quickly mobilize hard currency for imports or debt service.
- Cancel, Daniel (23 August 2012). "Venezuela Sells Record $44 Million PDVSA 2035 Bonds in Sitme". Bloomberg.
- "UPDATE 1-Venezuelan central bank sells $215 mln at currency auction". Reuters. 17 July 2013.
- "Treasury Sanctions Central Bank of Venezuela and Director of the Central Bank of Venezuela". U.S. Department of the Treasury. 17 April 2019. Retrieved 2 December 2019.
- "Galería de Expresidentes | Banco Central de Venezuela". www.bcv.org.ve.
- "Oficializan designación de Nelson Merentes como presidente del Banco Central de Venezuela". El Nacional (Caracas). 22 January 2014. Archived from the original on 12 February 2015. Retrieved 11 February 2015.
- "Venezuela President Maduro names new central bank chief". Deutsche Welle. 23 January 2017. Archived from the original on 21 April 2017. Retrieved 27 January 2018.
Venezuelan President Nicolas Maduro announced during his weekly broadcast Sunday that economist Ricardo Sanguino was nominated to replace Nelson Merentes as the country's central bank chief.
- Laya, Patricia (26 October 2017). "Maduro Taps Finance Minister as Venezuela Central Bank Head". Bloomberg News. Archived from the original on 8 November 2017. Retrieved 27 January 2018.
Venezuelan President Nicolas Maduro appointed Finance Minister Ramon Lobo as the country’s new central bank president, replacing Ricardo Sanguino.