Exchange Agreement No. 25
The Venezuelan Central Bank (“VCB”) and the Ministry of the People’s Power for Economy, Finance, and Public Banking, issued Exchange Agreement No. 25 (the “Exchange Agreement”), which was published in Special Official Gazette No. 6,122 of January 23, 2014. The Exchange Agreement establishes that the rate of exchange resulting from the latest awarding of foreign currency made through the Complementary System of Foreign Currency Administration (Sistema Complementario de Administración de Divisas - SICAD) will be applied to pay the foreign currency of the transactions of sale of foreign currency intended for:
a. Payment of consumptions with credit cards by reason of trips abroad and of electronic commerce transactions with suppliers abroad and acquisition of cash for trips abroad;
b. Remittances to relatives residing abroad;
c. Payment of operations inherent in national civil aeronautics;
d. Contracts of lease and services, use and exploitation of patents, trademarks, licenses and franchises, as well as importation of intangible goods; payment of network lease agreements; installation, repair, and maintenance of imported machinery, equipment or software corresponding to the telecommunications sector;
e. Public service of international air transportation of passengers, cargo, and mail, duly authorized by the National Executive;
f. International investments and payments of royalties, use and exploitation of patents, trademarks, licenses, and franchises, as well as of technology and technical assistance importation agreements, and
g. Operations inherent in the insurance activity.
The Exchange Agreement provides that the amounts in foreign currency paid by (i) foreign passengers who enter the national territory under any of the categories of migrants, and by reason of their departure from the country and (ii) natural and legal persons that own or hold foreign-registered ships and aircraft, on account of aeronautical, airport, port, and nautical services and other items established in the Exchange Agreement, will be sold to the VCB within 2 business days following their receipt, at the rate of exchange resulting from the latest awarding of foreign currency made through SICAD, reduced by 0.25%, except if the receiving and/or collecting entities agree to keep said amounts deposited in accounts with the VCB or with the national financial system, according to the provisions of Exchange Agreement No. 20 of June 14, 2012.
The Exchange Agreement became effective on January 24, 2014.
In order to access the Exchange Agreement, please click here.
“NOTE: THIS INFORMATION SHOULD NOT BE CONSTRUED AS LEGAL ADVICE ON ANY SPECIFIC MATTER AND ITS CONTENT ARE INTENDED AS A MANAGEMENT ALERT AS TO CURRENT DEVELOPMENTS IN VENEZUELA, ANY SPECIFIC LEGAL QUESTIONS REGARDING THE POSSIBLE APPLICATION OF NEW OR PROPOSED LEGISLATION TO PARTICULAR SITUATIONS SHOULD BE ADDRESSED TO TRAVIESO EVANS ARRIA RENGEL & PAZ.”