CARACAS (Reuters) – Venezuela will allow local banks to open foreign currency trading platforms as part of a loosening of the OPEC nation’s exchange controls, according to a central bank resolution published on Tuesday.
President Nicolas Maduro, facing a hyperinflationary economic collapse and a relentless weakening in the bolivar currency, has repeatedly promised to overhaul the system. But numerous plans have floundered because the central bank did not supply enough currency to meet market demand.
Economists - Country - Exchange - Control - System
Economists routinely identify the struggling country’s exchange control system as a hindrance to possible recovery from the economic meltdown. But financial industry experts warned Tuesday’s move does not eliminate the 16-year-old system of currency controls.
The resolution says financial institutions will be authorized to carry out “purchase and sale of foreign currency by individuals and businesses.” The central bank did not specify when the so-called “exchange tables” would begin to operate.
Measure - Bank - Involvement - Sector - Exchange
The measure will reduce the central bank’s involvement in private sector exchange operations. But the resolution notes that the central...
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