Dando bandazos…

By my watch, it’s 6:23 a.m. in Caracas. The Central Bank’s new solution to all our Forex woes – the  "Transaction System with Foreign Currency Assets" (SITME) - is supposed to go into operation in just over two and a half hours. And they still haven’t published the "bands" – the upper and lower limits on the price of the dollar!

Ermmmm…

One measure of how deep down the rabbit hole we are now is that BCV’s announcement that it does intend to publish the bands daily on its website was counted as progress in some corners. Which means some traders were seriously envisioning a situation where there were price bands…but they were secret.

Just one question though: if BCV starts publishing an exchange rate different from the Cadivi rate, isn’t it going to be in flagrant violation of the ilícitos cambiarios law?