Venezuela: Official exchange rate unified at 4.30 VEF per USD
December 30, 2011
On 30 December 2011, the Chavez administration announced its decision to end the two-tiered exchange rate system in place since January 2011 and to return to a single government-set rate. Effective 1 January, the preferential exchange rate of 2.60 VEF per USD, mostly used for food and medical imports, ceased to exist and the official exchange rate was unified at 4.30 VEF per USD. The move represented, in fact, a currency devaluation, although the Central Bank stated it is confident that the measure will not translate in a significant rise in inflation. Moreover, the government maintained the trading band of the regulated foreign exchange parallel market (SITME, Sistema de Transacciones con Titulos en Moneda Extranjera), where the bolivar continued to trade at an implied rate of 5.30 VEF per USD.