AVN 47.41 Increased By ▲ 0.76 (1.63%)
BAFL 28.76 Increased By ▲ 0.26 (0.91%)
BOP 3.76 Increased By ▲ 0.05 (1.35%)
CNERGY 3.15 Increased By ▲ 0.02 (0.64%)
DFML 11.06 Increased By ▲ 0.37 (3.46%)
DGKC 53.54 Decreased By ▼ -0.15 (-0.28%)
EPCL 42.65 Increased By ▲ 0.10 (0.24%)
FCCL 12.39 Increased By ▲ 0.26 (2.14%)
FFL 6.02 Increased By ▲ 0.09 (1.52%)
FLYNG 5.90 Decreased By ▼ -0.09 (-1.5%)
GGL 10.14 Increased By ▲ 0.24 (2.42%)
HUBC 69.42 Increased By ▲ 0.82 (1.2%)
HUMNL 5.80 Increased By ▲ 0.15 (2.65%)
KAPCO 22.12 Increased By ▲ 0.22 (1%)
KEL 1.81 Increased By ▲ 0.03 (1.69%)
LOTCHEM 29.01 Increased By ▲ 0.61 (2.15%)
MLCF 28.69 Increased By ▲ 0.24 (0.84%)
NETSOL 74.08 Increased By ▲ 1.68 (2.32%)
OGDC 78.45 Increased By ▲ 2.95 (3.91%)
PAEL 9.29 Increased By ▲ 0.09 (0.98%)
PIBTL 4.25 Increased By ▲ 0.01 (0.24%)
PPL 61.57 Increased By ▲ 3.56 (6.14%)
PRL 14.36 Increased By ▲ 0.28 (1.99%)
SILK 1.10 Decreased By ▼ -0.01 (-0.9%)
SNGP 43.38 Increased By ▲ 2.63 (6.45%)
TELE 6.88 Increased By ▲ 0.29 (4.4%)
TPLP 11.93 Increased By ▲ 0.23 (1.97%)
TRG 95.07 Increased By ▲ 1.27 (1.35%)
UNITY 13.21 Increased By ▲ 0.18 (1.38%)
WTL 1.16 No Change ▼ 0.00 (0%)
BR100 4,166 Increased By 34.9 (0.85%)
BR30 14,403 Increased By 325.8 (2.31%)
KSE100 41,668 Increased By 315 (0.76%)
KSE30 14,798 Increased By 134.3 (0.92%)
Follow us

CARACAS: A group of Venezuelan banks have started issuing debit cards to clients who have accounts in hard currency, a move quietly backed by authorities who want to extend the use of dollars in routine transactions, sources familiar with the measure said.

Banks have for more than a year stored cash dollars for corporate clients as part of an economic liberalization under socialist President Nicolas Maduro. For 15 years, dollar transactions were under strict government control.

State officials privately told banks to begin allowing clients with dollar accounts to use those funds to carry out transactions denominated in the local bolivar currency, said the four sources, who spoke on the condition that neither they nor their institutions would be identified.

The move will help improve liquidity and reduce barriers to commerce in an economy hobbled by sanctions, hyperinflation and widespread shortages, but the sources said they were told that Maduro’s government is not preparing a full dollarization.

At least four mid-sized private banks have started issuing the cards, the sources said. State-owned Banco del Tesoro is also advertising a dollar-based credit card on its website.

“The bolivar little by little will turn into a currency for transactions, while savings will be in dollars,” one finance executive said.

When clients make purchases with the cards, the associated dollars will be offered to Venezuela’s central bank, which will in turn auction the greenbacks as part of its foreign exchange platform, which is generally short of dollars, the sources said.

Banks do not yet have permission to make transfers in dollars between clients of different financial entities, the sources said.

Venezuela’s central bank, information ministry and bank regulator Sudeban did not reply to requests for comment.

In a speech to parliament this month, Maduro said Venezuela will move toward a 100% digital economy and that merchants would be able to use debit cards for dollar accounts. He did not provide details.

Venezuelan banks still only offer dollar accounts to a select group of clients, in part to ensure they do not accept funds associated with officials or business people who are sanctioned by the United States for ties to Maduro.

The US Treasury did not respond to a request for comment as to whether it was concerned about the rising use of dollars in the Venezuelan economy.

But the change will certainly be welcomed by Venezuelan shoppers and merchants, who now rely on workarounds such as makeshift vouchers and customer IOUs to complete dollar-based transactions in an economy with scant access to greenbacks.

“You will not suffer anymore for lack of change,” said Banco del Tesoro as part of its advertisements for its new dollar-based debit card.


Comments are closed.

Venezuelan banks issuing debit cards for dollar-denominated accounts

PM Shehbaz says ‘very hopeful’ deal will be reached with IMF in June

PPP nominates Murtaza Wahab as Karachi mayor candidate

Pakistan, Iraq sign two MoUs during FM Bilawal’s maiden visit

Inter-bank market: rupee falls, settles at 286.19 against US dollar

Open market: US dollar back to Rs305-310 level

KSE-100 rises 0.76% on budget optimism

IATA says blocked airline funds by countries including Pakistan threaten connectivity

Pakistan committed to its human rights obligations: PM Shehbaz

US and India agree defence industry cooperation plan

Oil rises 1% on Saudi plan to deepen output cuts from July