Exchange Agreement No. 21
Exchange Agreement No. 21 (the “Agreement”) issued by the Venezuelan Central Bank (“VCB”) was published in Official Gazette No. 40.134 of March 22, 2013. The Agreement establishes that the Superior Entity for Optimization of the Exchange System will regulate the terms and conditions of the special auctions of foreign currency resulting from the Republic’s petroleum-derived income in foreign currency, which will be used to cover imports for the real sector of the national economy, through the Foreign Currency Administration Complementary System, administered by the VCB, and according to the calls to be issued to that end.
Pursuant to the Agreement, the regulation to be issued by the Superior Entity for Optimization of the Exchange System will determine the methodology for the relevant award. In any case, it is established that no quotations will be allowed at rates lower than the official rate of exchange for sale of foreign currency, currently fixed at Bolivars 6.2842 per US$. 1.00. In addition, said regulation will establish the entities authorized to participate as demanders in the Foreign Currency Administration Complementary System; the requirements to be met by them in order to participate; the mechanisms for monitoring and controlling the import transactions made with the foreign currency obtained by means of bids awarded through said system, as well as for the evaluation of their performance.
The Agreement entered into force upon its publication in the Official Gazette.
In order to access the Agreement, 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.”