FOREIGN EXCHANGE INTERMEDIATION INDEX

Resolution No. 19-05-02, issued by the Venezuelan Central Bank (“VCB”), was published in Official Gazette No. 41.633 of May 15, 2019 (the “Resolution”). Said Resolution established that the banking institutions governed by the Law of Institutions of the Banking Sector, in the frame of the execution of the transactions of purchase and sale of foreign currency through the forex trading sessions, as prescribed in Resolution No. 19-05-01, published in Official Gazette No. 41.624 of May 2, 2019, must comply with the Foreign Exchange Intermediation Index (Índice de Intermediación Cambiaria – “IIC”) to the end customer, in the terms defined by the VCB, through a Circular Letter issued to that end.

IIC is understood as the percentage of foreign currencies acquired by the banking institutions through their respective forex trading sessions, which must be used for sale to their end customers. The banking institutions that do not reach the IIC to the end customer must pay the VCB a rate calculated in legal currency on the amount not applied to their customers, determined by the IIC established in the Circular Letter issued to that
end, multiplied by the difference between the maximum rate of exchange for sale and the minimum rate of exchange for purchase of the relevant week in which the unsold amount is evidenced, multiplied by factor 1.05, as showed in the equation established in article 3 of the Resolution.

The banking institutions must keep a weekly average amount in liquid foreign currencies, resulting from the transactions made through their respective forex trading sessions, equal to or lower than the percentage established by the VCB. If said institutions exceed the authorized limit, they must pay the VCB a rate on the excess amount, calculated in legal currency and resulting from the difference between the maximum rate of exchange for sale and the minimum rate of exchange for purchase of the week in which the excess is evidenced, multiplied by factor 1.05, as showed in the equation established in article 4 of the Resolution.

The Resolution became effective upon publication in the Official Gazette.
In order to access the Resolution, please click here.
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