More petrodollars to central bank to cope with imports
President of Venezuelan state-owned oil company Pdvsa Rafael Ramírez remarked that the oil company would not issue more bonds in US dollars
Pdvsa President Rafael Ramírez recently announced that President Hugo Chávez authorized from Cuba a revision of the Law on Oil Windfall Revenues to improve the distribution of oil revenues and increase the amount of US dollars sold to the central bank.
In 2012, Pdvsa sold some USD 46.08 billion to the central bank. Upon the revision, the central bank's US dollar stock will spike USD 2.47 billion to USD 49 billion.
Ramírez stressed that the "Government has the capacity to earn the US dollars the economy needs." However, he added that there are speculative pressures "and we have to sell more US dollars to the central bank; the higher availability, the lower speculation."
Ramírez pointed out that the Pdvsa will not issue more bonds in US dollars. "It makes no sense to issue bonds in US dollars. That was for Sitme (the Transaction System for Foreign Currency Denominated Securities).
Translated by Jhean Cabrera
President Nicolás Maduro is not only the heir to the throne, but also to an economic crisis which demanded urgent measures to rectify the course. The crisis showed up in two aspects: a 50% inflation estimate, and shortage of staples ranging between 70% and 98%. These issues might hit the President's poor popularity; considering his feeble electoral victory of 1% over his challenger.