The Central Bank of Venezuela (BCV in Spanish) is working on applying measures that seek to prevent the escalation of the dollar against the bolivar.

The board of directors of the Venezuelan institution wants to avoid a greater impact on prices and the purchasing power of salaries. To do this, it launched a plan that contemplates that companies, businesses and people use bolivars to purchase bonds.

Since March of this year, the CBV has offered bonds, called Coverage Titles, which maintain their value in dollars and also bear interest. Until last week, the annual rate a bond buyer earned ranged from a low of 8 % to a high of 10 %. Now, the scale is a minimum of 16 % and a maximum of 18 %. Terms range from 7 days to 92 days. The minimum amount to invest is 50,000 bolivars.

Last week, the local government injected bolivars into the country’s economy with payments to public workers and debts to contractors, which meant that this money landed in stores and companies.

One of the situations that also affected the exchange rate was the reduction in the supply of dollars by the Venezuelan government, which went from an average of about 200 million dollars a week to just 15 million last week.

K. Tovar

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Source: RunRun

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