Bolivar (VEF) currency exchange question

[aleon73]

Hello Forum Members,

First of all, Happy New Year to all of you!; have a basic question for seasoned veterans that have closed VEF/USD currency exchange transactions before; here it goes:

How much Bolivars (VEF) does BCV (Banco Central de Venezuela) currently permits to be sold to a VEF buyer, on a DAILY basis in Venezuela (assumption: both VEF buyer and seller have bank accounts in Banesco or BOD in Venezuela)? I was told different amounts during December 2016, meaning you can do millions, billions and even trillions; my guess is that the daily limit is less than 500M VEF.

Any informed feedback from associates and/or principals that have done this before will be highly appreciated; thank you.



Have a great 2017!!!!

[alefdracon]

depends; VEF/USD currency transactions are a special deal, especially with the bad rates and the turmoil. they are all case by case. done 2, one broke down because to many people involved, one worked for 4 weeks.

[sapuco]

a way to do oil discounts and used as a private arrangement, there is no private arrangement, its just a label, very similar to the old Kuwaiti Dinar Trade

[aleon73]

Thanks for your feedback Alefdracon; if I may ask, how many VEF were you able to exchange during the 4 weeks period?

[congregatio]

Haven't seen anyone doing VEF transactions recently, with the current inflation and political outlook the risk is astronomical if there is no arrangement, most of those are masked loans

[lairezippert]

before you spent your time and money read: www.stratfor.com/analysis/risky-exchange-venezuela and
www.imf.org/external/pubs/ft/wp/2016/wp16159.pdf

Private operators have been known to use cryptocurrency news.bitcoin.com/venezuela-chart-btc-trading-volume/

now VEF is a difficult exchange, no one wants the currency, its of the automatic clearing list, so they set up repo's and there is a lot of mumbo jumbo who is getting paid etc, in almost all cases only the government operators are paid and the private brokers almost never, procedures are often a nightmare.

so if you are a broker, don't waste your time, and no, agreements will not protect you.