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Banking in Venezuela - by Stephen Lendman
The Banco Central de Venezuela's web site (Venezuela's Central Bank) relates BCV history from its September 8, 1939 inception. At the time, conservative forces feared monetary instability under uncontrolled Central Bank spending. As a result, opponents (unsuccessfully) said giving it exclusive money creation power was unconstitutional.
Thereafter BCV reforms occurred in 1943, 1960, 1974, 1983, 1984, 1987, 1992, 2001, and most recently making banking a "public service" in 2010. More on that below.
In 1992, legislation established "administrative autonomy," in part transforming the bank into a "public legal entity. Until then, (it was solely) corporate in nature." Thereafter, Venezuela's president appointed "a collegiate body of seven members, a president and six directors," requiring two-thirds Senate approval for a six-year term. Its mandate is "monetary stability, economic balance and well-ordered economic development."
Under Article 156 (11) of Venezuela's 1999 Constitution, National Public Power controls:
"Regulation of central banking, the monetary system, foreign currency, the financial and capital market system and the issuance and mintage of currency."
Under Section Three: National Monetary System, Article 318:
"The monetary competence of National Authority shall necessarily be exercised exclusively by the Venezuelan Central Bank (BCV). (Its) fundamental objective....is to achieve price stability and preserve the internal and foreign exchange value of the monetary unit....The Venezuelan Central Bank is a public-law juridical person with autonomy to formulate and implement policies within its sphere of competence."
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