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Venezuela bond trading to resume with new controls

Venezuela bond trading to resume with new controls

Venezuela's Central Bank plans to relaunch the bond market in a few days, after a shutdown imposed by the government as it moved to bar brokerage firms from trading bonds.
The new trading system should be in operation next week, Central Bank director Armando Leon told the Venezuelan television channel Globovision on Thursday.
The market was closed last week after President Hugo Chavez blamed "speculative" trading for boosting inflation and eroding the value of Venezuela's currency, the bolivar.
The National Assembly approved measures earlier this month shutting out brokerage firms and giving exclusive control of the bond market to the Central Bank. Officials say the bank will now set a band of permitted prices in the market.
Venezuela maintains strict currency controls and sets official exchange rates. But the bond market had been a legal route for trading currency, and that activity recently drove down the bolivar's value to about half the official rate of 4.30 to the dollar for nonessential goods.


Updated : 2020-12-04 01:48 GMT+08:00