Monday, December 4, 2023

BCV intervened in the banking sector with 116 million dollars

With 110 million dollars sold by the Central Bank last week to the banks, a quiet period was sealed in the market

Despite the price control in the exchange market, the Central Bank of Venezuela (BCV) implemented, on October 23, the largest sale of foreign currency to banks since August 15 with the placement of 116 million dollars in the system of finance, which seems to expect a strong expansion of the bolivar currency in the coming days.

The price established for this exchange intervention is 37.04 bolivars per euro, equivalent to 34.98 bolivars per dollar, the reference exchange rate for transactions on Monday, October 23. It is higher by 0.73% for the sale of dollars made by the BCV on Monday, October 16th, and 0.82% compared to the extension of this intervention, for 10 million dollars, made on Thursday, October 19th.

With the 110 million dollars sold by the Central Bank last week to the banks, a quiet period was closed in the market with an increase of only 0.29% in the official exchange rate and a clear trend towards moderate informal parity with an increase of 0.49%.

With the expectation placed on a significant increase in oil revenues as a result of the temporary removal of sanctions imposed by the United States on the country’s hydrocarbon industry, financial sources expect a strong increase in public spending this quarter.

Sources expect more increases in social bonds to find a more compensatory effect from this strategy in a period that is expected to be more complicated politically.

World Nation News Desk
World Nation News Desk
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