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Regional Treasury

Venezuela Update: New FX Market Leaves Many Scratching Heads

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July 07, 2010

By Anne Friberg

Recent Venezuelan government actions with its FX market have treasurers looking for answers.

Venezuela is always a source of concern, so much so that the name itself has become almost synonymous with treasury headaches. But the recent changes to the foreign exchange system, starting with Chávez’s apparent takeover of the parallel market and new threats of government appropriations of private-sector firms have reached another level. Companies that continue to seek to do business in the country are thus scrambling to determine how the new FX regime will work, both in word and in deed.