Venezuelan, Colombian bank chiefs to discuss exchange rates

www.vheadline.com Posted: Thursday, January 30, 2003 - 2:52:25 AM By: Robert Rudnicki

Central Bank of Venezuela (BCV) officials are set to meet their Colombian counterparts in Caratagena, Colombia, in the next few days to assess what effects Venezuelan exchange rate controls might have on its ability to meet debt payments.

• The concerns revolve around the issue that businessmen in Venezuela may be unable to pay Colombian businessmen what they owe them, once exchange rate controls are put in place.

The government announced a suspension of foreign exchange trading last week, which was extended by a further five days earlier this week, as the BCV and the Finance (Hacienda) Ministry decide what measures to take to prevent the bolivar from losing anymore ground on the exchange market.

Since the start of this year the bolivar was lost around 25% of its value as concerns over the long term effects of the strike lead many Venezuelans to seek the relative safety of the US dollar.

Colombian Finance Minister Roberto Junguito says "in the next few days these payment concerns will be discussed by central bank directors from Colombia and Venezuela."