Venezuela Raises Limits On Transactions In Bolivars To Increase Use Of National Currency

CARACAS (Pakistan Point News / Sputnik - 25th November, 2020) Caracas decided to raise limits on transactions in Venezuelan bolivars and to tax operations in US Dollars in order to reactivate the local currency's use, Venezuelan Vice Minister Delcy Rodriguez said on Wednesday.

"In order to reactivate the use of the bolivar, [bank regulator] SUDEBAN will ensure a considerable expansion of the limits on transactions with debit cards and electronic transfers, both for individuals and entities," Rodriguez wrote on Twitter.

According to the vice president, foreign exchange operations will be subject to a transaction tax higher than the tax on large financial transactions made in bolivars.

The new regulations will require changes to existing laws, the vice president added.

From 2003 to 2018, exchange offices were closed in Venezuela. The Venezuelan government was the only authorized institution to carry out exchange transactions.

In 2018, President Nicolas Maduro announced the opening of the offices due to hyperinflation that affected the way payments are made in the local currency.

Rodriguez said that in order to increase the possibility of carrying out exchange operations in the local Currency, the government will authorize exchange offices to increase the numbers of their service providers.