FX securities market
The Venezuelan Central Bank (VCB) published in the Official Gazette of June 4, 2010, Resolution N° 10-06-01 which contains the Norms Regarding Operations in the Foreign Currency Market which substituted Resolution N° 07-12-01 that contained the previous Norms Regarding Brokerage or Intermediation Operations in the Foreign Currency Market of December 2007. Exchange Agreement N°18 executed between the National Executive and the VCB was also published in the same Official Gazette.

The new Norms establish that the operations of purchase and sale of Bolivars, securities denominated in foreign currency issued or to be issued by the Bolivarian Republic of Venezuela, its decentralized entities or any other entity, shall only be carried out through universal banks, commercial banks and savings and loans entities through the VCB's "System for Transactions of Securities in Foreign Currency"-"Sistema de Transacciones con Títulos en Moneda Extranjera (SITME)” in the terms and conditions established by the VCB, with the securities denominated in foreign currency determined by the VCB and within the bands of prices in Bolivars for the purchase and sale to be published daily by the VCB.

Exchange Agreement N°18 establishes that the VCB shall regulate via resolution, the terms, conditions and the system for the negotiation in national currency of securities in foreign currency issued or to be issued by the Bolivarian Republic of Venezuela, its decentralized entities or any other issuer and shall determine the bands of prices pursuant to the methodology that it deems convenient. Additionally, Exchange Agreement N°18 establishes that the VCB may authorize the terms and conditions for the swap operations of securities in national currency for securities in foreign currency. the final object of which is the obtaining of foreign currency.

In order to access the extract of the Official Gazette please click here: http://www.traviesoevans.com/pub/2010-06-04-394391-CC-18-y-normas-mercado-de-valores.pdf