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ADVANCING WITH DOLLARIZATION

by | Jan 14, 2020 | Market, Uncategorized

The variation of the dollar will now be taken into account for commercial loans and the bank takes a break. Argentina elects a new president but the results, again, were surprising.

VENEZUELA

The Maduro government seems to be taking a major change of direction in economic matters this year and this is evidenced in credit restrictions, fiscal expenditure control and the recent publication of official data a couple of weeks ago. Last week, the government published an authorization to the national bank to grant commercial loans in local currency but whose nominal value will be tied to the variation of a new exchange rate indicator. In this way, the commitments acquired by the debtors will vary as the Commercial Credit Value Unit moves, which will be adjusted according to the dollar reference rate published in the Central Bank of Venezuela. The local analysts consulted do not have high expectations about this measure due to the aversion that credit applicants may have in view of the unpredictable and volatile exchange rate, which was demonstrated again this week when the pace of spending accelerated and there is a direct impact on the unofficial exchange market. The local analysts consulted do not have high expectations about this measure due to the aversion that credit applicants may have in view of the unpredictable and volatile exchange rate, which was demonstrated again this week when the pace of spending accelerated and there is a direct impact on the unofficial exchange market. On what there is consensus is on how this is a kind of lifeguard to the national bank that has been decapitalizing for years due to hyperinflation and will now have the possibility of at least indexing the credits …

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