The Central Bank of Venezuela issued the Resolution No. 16-03-01 ("Resolution") published in the Official Gazette No. 40,879 dated April 5, 2016. The purpose of the Resolution is to set forth the valuation guidelines of the financial statements and the accounting record of the assets and liabilities denominated in Foreign Currency for the entities pertaining to the banking, insurance and securities market sectors ("Financial Subjects").
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The Resolution is valid as of the date of its publication in the Official Gazette. Moreover, the Resolution repeals Resolution No. 13-02-02 published in the Official Gazette No. 40,109 dated February 8, 2013.
The main provisions of the Resolution could be summarized as follows:
- The Resolution sets forth that the valuation of the financial statements and the accounting record of the assets and liabilities denominated in foreign currency of the Financial Subjects will be conducted at the purchase exchange rate provided in article 1 of the Exchange Agreement No. 35 dated March 9, 2015, i.e. VEB 9.975 per USD (that is, the protected exchange rate known as "DIPRO").
- The Resolution indicates that the DIPRO exchange rate will be used as well for the valuation and accounting record of the TICC securities issued by the Venezuelan State in foreign currency and payable in VEB.
The DIPRO Exchange Rate should not be used in the following cases:
- In the case of the intermediaries in the alternative markets conducting transactions with the complementary exchange rate ("DICOM"), the accounting registry of the securities issued by the Venezuelan State in foreign currency shall be performed at the acquisition price of said financial instruments, and their valuation will be made at the DICOM exchange rate valid for the respective date, minus 0.25%.
- The foreign currency kept at the closure of each month by the intermediaries of the alternative markets with the purpose to conduct transactions in such markets will be recorded at the price of its acquisition and will be valuated at the average official exchange rate of such markets published by the Central Bank of Venezuela, correspondent to the last workable day of the respective month.
- The entities different than the Financial Subjects will record their assets in foreign currency at the acquisition exchange rate, and the liabilities in foreign currency at the exchange rate at which the obligation was agreed, based upon the official mechanisms for the purchase and sale of foreign currency.
- The balances and transactions will be valuated at the official exchange rate at which said transactions can be liquidated.
- The valuation and accounting registry of the obligations in foreign currency associated to the request for acquisition of foreign currency prior to the Resolution, will be maintained at the official exchange rate used for such purposes at the time of its registry and valuation.
