..continue to fail

Dollar expected to swap strategies and BCV Finance
Written by Editor
Friday, February 19th, 2010
Caracas .- The technicians of the Ministry of Planning and Finance and the BCV continue to evaluate the strategy to follow in terms of public borrowing, to contain pressures on the dollar exchange rose yesterday to close around 6.50 bolivars for sale.

Sources of public finance office have said that from next week, the BCV will be posting a new Venezuelan currency bond issue amounting to between 500 million and $ 750 million.
Another alternative is laid on the table to increase the emissions of Venezuelan currency bond between 100 and 120 million.

Analysts polled say the current requirements in the foreign exchange market amounted to 300 million dollars a week, but the more Cadivi delay in approving requests from importers, any supply of foreign exchange through the bonds will be low.

"The amount of Argentine bonds and structured notes that put the Government in previous years reached between 150 million and 250 million dollars a week. And the market impact was marginal, fell short, still working with something Cadivi normality ", he consulted one of the operators.
In the table of discussions between Planning and Finance and the Central Bank, also agreed to place a forthcoming bond debt of the Republic of between 500 million and 1,000 million dollars in the long term.

The operation would almost ready but that the government needed to define the amount of the placement.

The analysts point out that for the Venezuelan government is not a good time to issue debt and to cancel the premium for risk is at relatively high rates.

They believe that the amount of operating reserves of the BCV is relatively low to meet its objective of stabilizing the dollar side, so the alternatives are evaluated to protect the payment capacity of the Republic. (Blog parallel dollar)