Search

 

Cablegate: Cadivi Authorizations Sharply Down

VZCZCXRO2700
PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHGR RUEHHA RUEHHO RUEHMC RUEHMT
RUEHNG RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC
DE RUEHCV #1758 3571837
ZNR UUUUU ZZH
P 221837Z DEC 08
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC PRIORITY 2338
INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
RHEHNSC/NSC WASHDC
RUMIAAA/HQ USSOUTHCOM MIAMI FL
RUCPDOC/DEPT OF COMMERCE
RUEATRS/DEPT OF TREASURY

UNCLAS CARACAS 001758

SIPDIS

HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR JSHRIER
COMMERCE FOR 4431/MAC/WH/JLAO

E.O. 12958: N/A
TAGS: ECON VE
SUBJECT: CADIVI AUTHORIZATIONS SHARPLY DOWN

1. According to statistics published December 22, the
Government of the Bolivarian Republic of Venezuela's (GBRV)
foreign exchange authority, known by its Spanish acronym
CADIVI, sharply reduced its foreign currency authorizations
over the first three weeks of December. While in past years
December authorizations spiked sharply, this year, through
December 18, CADIVI's average daily authorizations for
December were down almost 40 percent compared to the 2008
year-to-date average (USD 115 million vs. USD 187 million per
working day).

2. Comment: This sharp drop suggests the GBRV and the
Central Bank of Venezuela, which sets CADIVI's monthly
allocation, have comprehended the severity of the external
(foreign currency) shock hitting Venezuela as a result of
declining oil prices and are beginning to take action. It is
possible CADIVI authorizations will pick up in the second
half of December, thus bringing the monthly average in line
with the yearly average. We doubt this for two reasons,
however. First, daily authorizations for November dropped
somewhat at the end of November. Second, Minister of Finance
Ali Rodriguez indicated December 19 there would be cuts to
CADIVI's allotment of dollars to Venezuelans traveling
abroad, suggesting the GBRV is moving to contain CADIVI
authorizations across the board. We will discuss the
economic implications of this move septel. End comment.
CAULFIELD

© Scoop Media

 
 
 
World Headlines

 

APEC : Leaders Issue Kuala Lumpur Declaration

The leaders of the 21 APEC member economies issued the Kuala Lumpur Declaration following the first-ever virtual 27th APEC Economic Leaders’ Meeting chaired by Malaysian Prime Minister Muhyiddin Yassin. Convening for the first time since the ... More>>

UN: Refugee Resettlement Numbers Fall To Lowest In Two Decades

Refugee resettlement numbers will be at a “record low” this year, the UN refugee agency (UNHCR) said on Wednesday, with only 15,425 people resettled in the first nine months of 2020, compared to more than 50,000 in 2019. In 2016, resettlement ... More>>

G20: Global Co-Operation And Strong Policy Action Needed For A Sustainable Recovery

The COVID-19 crisis has exposed major weaknesses in our economies that can only be fixed through greater global co-operation and strong, targeted policy action, according to a new OECD report presented to the Leaders of the G20 countries at their ... More>>

OECD: GDP Rebounded By 9.0% In The Third Quarter Of 2020 But Remains Below Pre-Pandemic High

Following the unprecedented falls in real gross domestic product (GDP) in the first half of the year in the wake of COVID-19 containment measures, GDP in the OECD area rebounded by 9.0% in the third quarter of 2020 but it remains 4.3% below its pre-crisis ... More>>