QUESTION: Hi Margie.
I've been recently intrigued by the topic of Venezuela's currency market. As the SIMADI was announced yesterday, I have some questions.
Dolartoday.com isn't listing a rate for it yet. Has a date of its true introduction been announced? What is the speculation on what its rate will be? I've read everything from 120 to 180.
More importantly, in an earlier answer you posted, you said it was possible to convert VEF to USD via a wire transfer from a Venezuelan bank account to a US bank account. Is this still the case?
If this is still possible, is the transfer made at the CENCOEX rate of 6.3, the SICAD 1 rate, the SICAD 2 rate, or will it be at the SIMADI rate? Also, are there limits on 1-how much may be wired to the US at once, or 2-wired overall to the US over time?
Thanks in advance for your help. Your previous posts on the matter have been the most helpful I've thus found.
ANSWER: Hi Jeremy,
The SIMADI system was created in an attempt to make people believe the government is actually making efforts to lower the black market rate but they actually benefit the most from the huge difference between the official rates and the black market rates.
This system will start working as soon as the regulations are published which is expected to be today February 11th, so i assume it will be started tomorrow by Banco de Venezuela.
The initial rate is expected to be around 140 Bolivars per Dollar, but it's all speculation, it will depend on how many offerers show up. It's not clear whether PDVSA will be one of them. They would have to change the law again for that to happen. On the other hand some might try to get rid of their PDVSA bonds but not many are interested in those now.
As for converting VEF to USD via wire transfer, I must have made a mistake, It hasn't been possible since CADIVI was introduced. There have been many changes to the regulations and at some point banks in the USA were even exchanging VEF for USD in cash, but that's long gone. When SICAD II was introduced Banco de Venezuela clients were able to have Dollars wired to a third party abroad. Since the regulations haven't been published Im not sure this is still the case.
Those transfers were made at the CENCOEX rate of 50 VEF per USD at the SICAD 2 rate, which has been replaced by the SIMADI. The limits are 300 USD per day per person.
You are vey welcome. I hope you find this helpful as well.
---------- FOLLOW-UP ----------
Thanks you for your excellent, excellent answer. Very much appreciated.
For reference, this is the answer of yours I was drawing from when referring to bank-to-bank wire transfers: http://goo.gl/eqNhqo
Much has changed since then, obviously. As we wait for SIMADI to roll out and the appertaining effects, another question: what methods, if any, currently exist for converting VEF to USD? I found this answer of yours; is it still valid, and, if so, still the only method?http://goo.gl/q4wnp6
Thanks once again,
You are very welcome.
The only way right now is through the black market, finding a suitable seller is very difficult, you could even get in trouble if contacting the wrong person (money laundering). So the answer is still valid for large amounts even when SIMADI is in place.