The Central Bank of Venezuela in recent months has continued with its exchange rate intervention policy in order to guarantee “stability” in the exchange rate of the bolivar with respect to the dollar.
According to an article from the Venezuelan portal, Banca y Negocios, during the first fortnight of March there was a change in trend in the foreign exchange market, since the highest Venezuelan financial institution forcefully made official an increase in its foreign exchange intervention, making the The official exchange rate will drop 1.20% in the first 15 days of the month and will drag the parallel down 0.36%.
In this context, The indicated data indicates that to achieve this containment, the BCV had to sell 491 million dollars to the Bank in the last month, and 33% more than the amount registered (368 million dollars) in the previous month and a half.
That said, although currently, at the time of writing this note, the price of the parallel dollar is at 25.29 Bs/USD, and the official rate of the BCV closed on Friday at 24.20 Bs/USD; The market expects the dollar to resume its upward trend to price levels of between 65 and 75 per dollar at the end of the yearthis, therefore, would imply an increase of around 200% in the remainder of 2023.
“This is a complex digestion forecast that ensures that prices would again mark a three-digit rise in inflation, which has been reinforced by an increase in monetary financing that exceeds 25% so far this year, while reduced by around 10% in the same period of 2022”explained from Banking and Business, at the same time that they also pointed out that there were doubts about whether the increase in financial intermediation by the BCV will be consolidated, since it seems to have been maintaining a relative discipline in the expansion of monetary liquidity and, in addition, it has reinforced the restriction of bank liquidity, through a greater legal reserve.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
It may interest you:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.
