Venezuela to Discuss Dollarization Plan With Local Banks
- New domestic clearing system could be implemented in mid-2021
- Plan would allow local institutions to offer loans in dollars
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Venezuelan central bank officials have summoned executives from a handful of local financial firms to discuss plans to create a clearing and settlement system in U.S. dollars starting next year, according to five people with knowledge of the matter.
The move would be an important step as a means to formalize transactions in dollars in Venezuela’s banking system, the people said, declining to be named since the proposal hasn’t been made public. It would also allow banks to offer loans in dollars, which could boost a moribund local credit market, two of the people said. The local bolivar currency would co-exist in the banking system.