National executive could establish a multi-currency system
Ronald Balza proposes to establish a multi-currency system in Venezuela that allows the financial system to carry out financial intermediation
The economist Ronald Balza explained during a radio interview that the national executive should allow the Venezuelan financial system to have various products that facilitate financial intermediation.
According to Balza, the government should allow citizens within the financial system “to be able to make more than deposits, that they can allow mobilization between banks at the national level and abroad, and that they can also access loans in dollars to make your investment”.
For the economist, dollarization is not closely related to the elimination of the bolivar, and neither does this process imply the total elimination of the Venezuelan currency. “Dollarization is not eliminating the bolivar, but I do not agree to prohibit banks from using other currencies for transactions within Venezuela.”
The problem does not lie in the use of the national currency, but in the need to use all the currencies that can circulate in the country.
Multi-currency system requires regulation
Balza is emphatic in pointing out that to start a multi-currency system it is necessary to establish a “prudential regularization” such as that used by any country in the world, with which it seeks to protect itself from risks that may impact the economy, such as
To start a multi-currency system in Venezuela, a prudential regularization is required, according to the expert, which is used anywhere in the world to avoid “risks in the economy, such as bankruptcy of lenders and losses to depositors.”
The idea is not to prevent dollarization, but “to design a system so that all the currencies needed for each transaction can be used in Venezuela,” he stressed.
According to what Balza explained, the bolivar is currently used for the acquisition of goods and the payment of services, not to acquire foreign currency.
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