26.3 C
New York
Thursday, July 7, 2022

Venezuela suspends state intervention of top private bank Banesco

Venezuela suspends state intervention of top private bank Banesco© Reuters. People queue to withdraw cash from the automated teller machines (ATM) at a Banesco bank branch in Caracas

CARACAS (Reuters) – Venezuela’s government has suspended a state intervention of top private bank Banesco after a nine-month investigation into its involvement in foreign currency operations, according to a decree circulating on Friday.

The government of President Nicolas Maduro last May said it was taking over Banesco for “attacks” against the country’s rapidly depreciating bolivar currency. It arrested 11 top executives and held them for nearly two weeks.

Finance Minister Simon Zerpa ordered the suspension of the takeover “in order to protect the stability of the banking system and the interests of savers, customers and creditors,” according to an entry in the government’s Official Gazette dated Feb. 27.

The government, which has maintained a currency control system since 2003, last year eliminated rules barring the purchase and sale of foreign currency in a parallel market.

In January, it allowed banks to sell euros in cash directly to companies seeking to acquire raw materials from abroad, without having to go through the currency control system.

Venezuela is struggling under a hyperinflationary economic collapse that has made basic financial operations difficult as prices rise more than 2 million percent per year.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

- Advertisement -

Latest Articles

Popular Articles