With the reform, the BCV will lose exclusivity as the issuer of banknotes and coins
Also new in this bill is the loss of exclusivity as the issuer of banknotes and coins, as share that power with the organizations of "community level" monetary emitting species for the exchange of goods and services.
Aristimuño Herrera & Asociados

The Law Reform Project of the Central Bank of Venezuela (BCV), approved in first reading by the National Assembly on Tuesday, amending 40 articles of the legal body turned just four months ago and includes 12 new sections. The last amendment was published in the Official Gazette No. 39,301 of 6 November 2009. The reform will allow the BCV (BCV) to expand its role in the consolidation of "socio-productive in the country" pursued by the national executive.
Through the figure called "power of selective credit control", BCV take a more active role in the reorientation of public and private funding "to those areas best suited to the economy," explains the project to be reviewed by Finance Committee of parliament.

With this reform, the BCV is given the "sole and exclusive authority" to set minimum and maximum rates that banks and other financial institutions, private or public, can collect and pay for different types of operations that perform active and passive .

The council president, Nelson Merentes noted that the reforms aim to give flexibility to the bank without it losing its autonomy. "Bodies of monetary policy decisions have to be flexible in making decisions."

The NA deputies, Pastora Medina, thinks otherwise saying that the new law will place the BCV "government service", this "essentially follows the line of President Chavez," whipped.

The bill also proposes to add new types of assets to the inventory of international reserves, so that they can not only be shaped by gold, foreign exchange and money certificates, but by any other "qualifying asset" in the international .

Deputy Ricardo Sanguino, president of the Finance Committee of the NA, said that law reform is aimed at making the institution more rigorous BCV regarding the coordination and operation of financial institutions.

This reform and whose respective second reading and adoption of the law, it is expected takes place after Easter, the executive will have the opportunity to secure financing at a time of falling revenue.

Another important element in Aristimuño Herrera & Associates we are concerned, this reform is that in so far as the "village level" gain space in the issuance of currency to exchange goods and services produced in part by subsistence economies, the measurement of liquidity, GDP, etc, will become more difficult or rather we will have two parallel economies. And this difficulty, we see that despite the Board award amount as BCV exercise supervision and monitoring of various systems of payments, whether or not operated by the Central Bank of Venezuela, as well as dictate the rules of operation .

This subsistence economy, as we have called, will increasingly relevant to the extent that investment falls, unemployment rises and many regions have to generate their own livelihoods, by providing appropriate economic conditions.



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