A Fourth Estate® Service

Tuesday, March 2, 2021

Venezuelan Central Bank Negotiates Dollarization of Local Banking System

Officials of the Venezuelan central bank summoned executives from numerous local financial companies to discuss plans to create a clearing and settlement system in US dollars starting in 2021.

Officials of the Venezuelan central bank summoned executives from numerous local financial companies to discuss plans to create a clearing and settlement system in US dollars starting in 2021.

According to an El Pais Tuesday report, five people familiar with the matter revealed these negotiations, pointing out that the main goal is to allow the socialist regime of dictator Nicolas Maduro to curb the economic sanctions imposed by the Trump administration.

The people told the newspaper that the move would represent a major step as a means to formalize transactions in dollars in the banking system of Venezuela. They said this would also allow banks to offer loans in US dollars, which would boost the local credit market.

El Pais pointed out that at least five private banks have met with central bank officials over the last few weeks, pointing out that several of Venezuela’s banks are now offering services to clients holding dollars.

Article © 2021 Fourth Estate® — All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Recent Articles

Get the Daily NewsBrief in your inbox

Related Stories