Bolívar Distorted: The Effects of Exchange Controls on the ...

Appendix II
1. Selected CADIVI Regulations 109
<strong>The</strong>se were among the regulations imposed with the original decree that created CADIVI. <strong>The</strong>se
original rules have been modified since to make additional allowances for credit cards, traveling,
remittances and other legal activities.
o All foreign exchange transactions will be centralized at the Venezuelan Central Bank
o <strong>The</strong> administration, control and requirements will be determined by CADIVI
o <strong>The</strong> Venezuelan Central Bank will establish a budget for the total use <strong>of</strong> foreign currency
during the fiscal year
o <strong>The</strong> Venezuelan Central Bank will establish an amount above which all important export
<strong>of</strong> monetary instruments in foreign currency will have to be declared.
o All foreign currency obtained from the export <strong>of</strong> goods, services and technologies will
have to be sold to the Venezuelan Central Bank within five days <strong>of</strong> receiving them.
Exports will be calculated at the FOB price, as detailed in the custom declaration
o All foreign currency coming into the country from transport services, travel, wire
transfers, leases, dividends and from all other services as well as commercial, industrial,
pr<strong>of</strong>essional and personal activities will have to be sold to the Central Bank
o Companies wishing to pay dividends, capital gains, royalties, intellectual property rights
will have to register in order to purchase foreign currency.
o All ADS, ADR, GDS and GDR programs will have to register for payment <strong>of</strong> dividends,
capital gains and interest
o <strong>The</strong> decree suspends all trading <strong>of</strong> public debt bonds issued in foreign currency until the
Executive branch and the Central Bank establish regulations for such trading.
109 <strong>The</strong> complete law that created CADIVI and set up the laws surrounding it were published in the Official Gazette
<strong>of</strong> Venezuela (Gaceta Oficial No. 2.302) on February 5, 2003. <strong>The</strong>se selected regulations were translated and
published by Miguel Octavio for Bbo Weekly Report on February 7, 2003. Reprinted with permission.
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