Exchange Agreement No. 14 / Currency Devaluation
Exchange Agreement No. 14 was published in the Official Gazette of February 8, 2013. Said Exchange Agreement modified the official rate of exchange as follows:
Rate of Exchange of Bolivars 6.2842/ USD 1.00 for purchase, and Bolivars 6.30/ USD 1.00 for sale, applicable as from February 9, 2013.
Rate of Exchange of Bolivars 6.30/ USD 1.00 for: (i) payment of foreign public debt and (ii) purchase in the primary market and in national currency of bonds of the Republic or its decentralized entities issued or to be issued in foreign currency.
Rate of Exchange of Bolivars 6.30/ USD 1.00 for the acquisition of the foreign currency required for: payment of capital, interest, guaranties, and other collaterals of the foreign private debt incurred to any foreign creditor, including multilateral and bilateral agencies, integration agencies or foreign governmental entities, export finance agencies. The same rate of exchange will be applied to the acquisition of the foreign currency required for international investments and payment of royalties, use and exploitation of patents, brands, licenses and franchises, as well as to the payment of technology and technical assistance importation agreements, according to Ruling No. 056, dated August 23, 2004, issued by the Foreign Currency Administration Commission (“CADIVI”).
A rate of exchange of Bolivars 4.2893/ USD 1.00 will be paid for: (i) purchase of foreign currency the payment of which was requested from the Venezuelan Central Bank (“VCB”) up to February 8, 2013; (ii) purchase of foreign currency made by exchange operators and actually paid to their clients before said date.
A rate of exchange of Bolivars 4.30/ USD 1.00 will be paid for: transactions of sale of foreign currency the payment of which was requested from the VCB before February 8, 2013.
A rate of exchange of Bolivars 4.30/ USD 1.00 will be paid for: sale of foreign currency made by exchange operators before the date of this Agreement for the AAD (Authorization for Acquisition of Foreign Currency) requested by Diplomatic and Consular Representations and their officers.
A rate of exchange of Bolivars 4.30/ USD 1.00 will be paid for: acquisition of foreign currency (i) in cash by reason of trips abroad, (ii) for making payments in foreign currency with credit cards by reason of trips abroad, and (iii) payment of consumptions through electronic commerce transactions abroad; which rate will be applicable up to February 12, 2013. The transactions made as from February 13, 2013 will be paid at the rate of exchange in force at the time when the transaction is made.
A rate of exchange of Bolivars 4.30/ USD 1.00 will be paid for: the sale of foreign currency corresponding to the ALD (Authorizations for Payment of Foreign Currency) approved by CADIVI, sent by CADIVI to the VCB, and received by the latter up to February 8, 2013, effective on said date, and the payment of which has not been requested by the relevant exchange operator from the Issuing Entity by the aforesaid date. It will also be applied to the sale of foreign currency corresponding to the AAD for importation processed through the Reciprocal Payment and Credit Agreement of the Asociación Latinoamericana de Integración (ALADI) that have the relevant reimbursement code by February 8, 2013.
A rate of exchange of Bolivars 4.30/ USD 1.00 will be paid for: sale of foreign currency corresponding to AAD issued by CADIVI before February 8, 2013, which do not have the ALD by said date, or which have the ALD on said date but it has not been sent by CADIVI to the VCB, or for which a reimbursement code has not been issued by said date in the case of importation processed through ALADI, for the items mentioned below:
a) Importation for the sectors of food, health, commerce, communications, press; household appliances, electronics, information technology, and telecommunications, always provided that they have an AAD issued by CADIVI since October 15, 2012.
b) Importation for the automotive, electrical, construction, chemical, rubber, plastic, paper, cardboard, wood, health-veterinary, textile, graphic, book, school book, services, science, technology, machinery, equipment, metallurgical, nonmetallic mineral industries, always provided that they have an AAD issued by CADIVI since July 15, 2012.
c) Sale of foreign currency corresponding to AAD issued by CADIVI before February 8, 2013, for the payment of importation under the Treaty that Creates the SUCRE (Unified System for Regional Clearance of Payments).
d) Sale of foreign currency corresponding to requests with status received by CADIVI before February 8, 2013, always provided that said requests were filed after July 15, 2012 and are intended for the payment of: (i) transactions inherent in the national civil aeronautics (Ruling 83), and (ii) network lease agreements; installation, repair, and maintenance of imported machinery, equipment or software corresponding to the telecommunications sector (Ruling 63).
e) Sale of foreign currency corresponding to requests with status received by CADIVI before February 8, 2013, intended for the following items: i) Payments on account of expenses of students taking academic courses abroad; ii) Payment on account of expenses for recovery of health, sports, culture, scientific research and other cases of special urgency in the judgment of CADIVI; iii) Payments to retirees and pensioners living abroad; iv) transactions for remittance of funds to relatives living abroad; v) lease and services agreements, agreements for the use and exploitation of patents, brands, licenses, and franchises, and for the importation of intangible goods, not included in article 8 of this Exchange Agreement (Ruling 63 ); vi) passenger, cargo, and mail air transportation public services; vi) transactions inherent in the insurance activity.
f) The purchase of foreign currency from the VCB made by Banco de Comercio Exterior, C.A. (BANCOEX) by reason of financing in foreign currency made within a period of six (6) months before February 8, 2013, date of the entry into force of Exchange Agreement No. 14.
The private natural or legal persons engaged in the exportation of goods and services may withhold and administer up to forty percent (40%) of the income received in foreign currency by reason of the exportation made, in order to cover the expenses incurred for such activity, other than financial debt, and for the purposes prescribed in article 2 of Exchange Agreement No. 20 of June 14, 2012. The regime prescribed in Exchange Agreement No. 9 of July 14, 2009 is excepted.
The National Executive will create a superior entity with the purpose, among others, of promoting the transformation of the socio-productive model under the orientation of the National Plan of Economic and Social Development, and seeking the balance of the flows of foreign currency of the national economy.
Exchange Agreement No. 14 of December 30, 2010, Exchange Agreement No. 15 of January 10, 2011, article 5 of Exchange Agreement No. 12 of July 15, 2010, as well as any other provision conflicting with the provisions of this Exchange Agreement, are repealed.
Find a copy of the Official Gazette of February 8, 2013, 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.”