Delcy Rodríguez was in charge of listing the financial measures, but without specifying when each of them will be implemented. She reported that there will be an increase in bank commissions and that banknotes from the previous monetary cone will be withdrawn. Nicolás Maduro said that the goal is to activate bank credit and that it is time to “return to the path of cryptocurrencies.”
President Nicolás Maduro will implement a series of financial measures to activate access to bank financing. During a meeting with representatives of the banking, insurance and stock market sectors, he highlighted the results given this Thursday, August 29, by the Central Bank of Venezuela (BCV) of an economic growth of 8.9% in the first half of the year. He stated that hyperinflation in the country “was defeated” and that domestic consumption grew by 8.7%.
“On the issue of inflation, in 2024 we can say with peace of mind, serenity, and happiness that we have defeated hyperinflation (…) These numbers were achieved in times of political turmoil because we came with unilateral coercive measures intact, we have to learn from those people. We all have the right to growth,” he said.
He noted that The Venezuelan economy “was practically undisturbed,” referring to the US sanctions and the protests generated after the presidential elections on July 28, in which the complete publication of the electoral data was required. “We had coordination with agricultural producers and practically on Thursday of that week, we had full supplies. This shows how robust the economy is and that the political dispute does not transfer to the economy. Hyperinflation has been defeated (…) Economic growth this year is pointing positively and there is optimism among economic actors.”
Vice President Delcy Rodríguez, who was present at the meeting, was in charge of listing the measures, but without specifying when each of them will be implemented.
He indicated that “Discounts” on banking reserves will be applied agreed with the BCVwhich is presumed to be a reduction in the percentage of resources that entities must deliver to the issuing entity, in this way, the availability of funds for the delivery of credits will increase.
Venezuela has the highest reserve requirement in the world, with the BCV setting it at 75%, well above the next economy with the highest rate, Nigeria with 27.5%, while among the countries in the region it reaches 11% in Colombia and 9% in Chile.
He also announced that a “fully digitalized” interbank currency market will be in place so that banks can buy and sell dollars among themselves and thus meet market demand.
He also said that through the Ministry of Economy and Finance, investment instruments will be issued, similar to the BCV’s hedge securities, which can be acquired by banks and the general public. These securities will be traded on the Caracas Stock Exchange. “This measure will allow for greater depth in the stock market and will serve as an efficient investment mechanism to strengthen the soundness of the banking system.”
Rodríguez said that the banking commission scheme, which was clearly outdated, would be updated, meaning that there would be an increase in these rates in the coming weeks.
Another of the statements made by the vice president of the economic area is that taxpayers will be able to pay their taxes through digital platforms and banknotes from the previous monetary cone will be withdrawn.
Getting back into cryptocurrencies
Nicolás Maduro stressed that these statements are “real measures, because the real economy cannot be regulated by decree. We are in a multi-currency world and we have to adapt.” He also stressed the importance of “democratising” capital and increasing access to credit to create “wealth.” He highlighted that the banking sector grew 21% in the first half of the year, “because there is financial, banking and monetary health.”
He added that “if we expand financing and target priority sectors, we will continue to build virtuous circles of growth; the money supply must become a national product so that there is a stronger economy.”
On the other hand, he said that it is time for the country to “get back on the path of cryptocurrencies (…) A group of bandits destroyed the path of crypto, but we are going to take it back.
*Read also: BCV stated that in the second quarter of 2024 there was GDP growth of 8.7%
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