Effective Date of Currency Redenomination (Postponement)
Decree No. 3.445, issued by the Presidency of the Republic, was published in Official Gazette No. 6.379 Extraordinary, dated June 1, 2018 (the “Decree”). Said Decree defers to August 4, 2018, the time at which the unit of the monetary system of the Bolivarian Republic of Venezuela is to be redenominated, as per Decree No. 3.332, published in Official Gazette No. 41.366 dated March 22, 2018 ( the “Redenomination Decree”).
The Decree establishes that it is expressly understood that the references to June 4, 2018, contained in articles 1, 2, 3, 4, and 5 of the Redenomination Decree and in the Temporary Provisions of the same, will be understood to be references to August 4, 2018. Likewise, the reference to June 3, 2018 in article 4 of the Redenomination Decree will be understood to be a reference to August 3, 2018.
Likewise, the Decree provides that a Resolution of the Board of Directors of the Venezuelan Central Bank (“VCB”) will determine the denominations of the bills and metallic coins issued by the same, representative of the current monetary unit, that may circulate after August 4, 2018 and continue to be used as legal tender until their demonetization in accordance with the BCV’s instructions.
Lastly, the Decree clarifies that except as provided in the same, the other provisions of the Redenomination Decree remain in effect.
The Decree became effective upon publication in the Official Gazette.
In order to access the Decree, please click here.
“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”