Following the country’s hyperinflation and severe economic crisis, Venezuela announced on Wednesday the deregulation of foreign currency trading in local banks.
According to a decision issued by the Central Bank of Venezuela, individuals will be able to trade foreign currencies in local banks with official central bank prices.
The bank’s decision comes after the United States imposed tough sanctions against Venezuela.
Amidst a political deadlock between President Nicolas Maduro and opposition leader Juan Guaidó, who has declared himself the legitimate leader of the country, the move aims to ease transactions and protect individuals from the rapid devaluation of the Bolivar.
In 2003, former President Hugo Chávez set restrictions on currency exchange for the first time. The government has considerably regulated the sale and purchase of the US currency. Recently the government has begun to remove restrictions, in an attempt to reduce the gap between the official and black market prices.