Central Bank suspends payment guarantees in trade with Venezuela.
The Central Bank (BC) has suspended new operations with Venezuela in the foreign trade payment clearing system. Today's Official Gazette of the Union (15) publishes the suspension of operations through the Reciprocal Payments and Credits Agreement (CCR); the suspension of the agreement does not prevent foreign trade between Brazil and Venezuela; the measure only affects the guarantee given by the BC of receiving payment for exported goods or reimbursement in the case of imports.
Brazil Agency - The Central Bank (BC) has suspended new operations with Venezuela in the foreign trade payment clearing system. Today's Official Gazette of the Union (15) publishes the suspension of operations through the Reciprocal Payments and Credits Agreement (CCR).
The suspension of the agreement does not impede foreign trade between Brazil and Venezuela. The measure only affects the guarantee given by the Central Bank for receiving payment for exported goods or reimbursement in the case of imports. The agreement also allowed access to loans from the financial system.
The reason for the suspension was Venezuela's default within the framework of the CCR, a mechanism that includes the central banks of the member countries of the Latin American Integration Association (ALADI): Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Uruguay, Venezuela, and the Dominican Republic.
The CCR was created to facilitate trade in the region by reducing international transfers. Adjustments made by central banks occur every four months.
On the 8th of this month, the Central Bank of Brazil (BC) was informed by the Central Bank of Peru, which centralizes all transactions, that Venezuela had not made the payment related to the agreement. The outstanding balance is US$262,5 million. Therefore, the BC decided to suspend the payments, which will only be reversed when the outstanding balance is paid.