Caracas, March 10, venezuelanalysis. According to Vice-President for Economy Miguel Forex Abad, the government will consolidate its 6 and 13 bolivar exchange rates into a new protected rate of 10 bolivars per dollar, which will be made available for vital imports such as food, medicine, raw materials for production, as well as pensions for Venezuelans living abroad.
The new rate, known as DIPRO, will also be used for payments in the state sectors of healthcare, culture, sports, scientific investigations, and in other cases of special urgency. Venezuelan students studying at academic institutions abroad will likewise have access to DIPRO to finance their studies. While DIPRO is not free floating, the new rate will be progressively adjusted over time to account for economic and social impacts, though specific details regarding this fluctuation have yet to be released.
The vice-president also unveiled a second floating exchange rate known as DICOM, which will govern all other transactions not covered by DIPRO. As the replacement for SIMADI, DICOM will fluctuate according to market supply and demand, opening at an venezuela rate of That is, in order to forex the maximum annual limit of 2, travel dollars, Venezuelans will now have to paybolivars in forex of 33, bolivars.
The new rate is intended to promote national production and incentivize non-oil exports, as exporters and investors will now be permitted to exchange their dollar earnings for bolivars at the floating DICOM rate rather than the fixed CENCOEX rate of However, as long as the black market bolivar rate remains venezuela than five times the highest official rate, firms and individuals will have little incentive to change their dollars at the latter rate.
With the new floating DICOM rate, the government hopes to reduce this gap and bring inflation under control. However, in the 24 hours since the announcement of the measures, no fall in the parallel Dollar Today rate has been reported. In another important change unveiled yesterday, the state oil company PDVSA will now sell dollars to the Venezuelan state at the DIPRO rate of 10 bolivars per dollar instead of the prior rate of 6.
The move is anticipated to generate greater revenue for the state oil giant, which is needed to cover internal operational costs, honor debts with contractors and providers, as well as continue funding social programs. Published on Mar 10th at 6. Audio Images and Galleries Video. Basic Facts Bibliography Books Economic Indicators Constitution Links. Solidarity groups Upcoming Events Calendar.
Economy Venezuela Revamps Currency Exchange System. Social Web Keep up to date with Venezuelan news and views: Latest News Analysis Audio Images Videos Venezuela Releases Regional Election Timetable, Provokes Opposition Ire. Comrades from Marea Socialista: Who is the enemy? Venezuelan Grassroots Socialist on the Challenges Facing the Bolivarian Process. Who Will Accuse the Accusers? Statement in Defense of Venezuela. The Venezuelan Political Landscape.
Meeting with Alan Woods on Hugo Chavez and the Venezuelan Revolution. Arson, Killings and Chaos: Venezuelans Protest Against Threat of OAS Forex. Chavista Motorcade Commemorates Anniversary of Death of Hugo Chavez. Grassroots Activists Register as Candidates for the National Constituent Assembly. World Ignores Opposition Violence at Venezuela Protests. Venezuela's Grassroots Venezuela Constituent Assembly. Venezuelan Revolutionaries Demand "Truly Communal State".
Opposition March on May Day, Ends in Violence. More Content Features Interviews Letters Multimedia Audio Images and Galleries Video Background Basic Facts Bibliography Books Economic Indicators Venezuela Links.