What is CADIVI? Venezulan Economy?

Question

I will be moving to Venezuela soon and I have heard about something called CADIVI. I have tried doing research but I can't quite understand what it is.
Can someone please give me a thorough, easy to understand explanation?
Why was it created?
Please explain to me like you would explain to a 12 year old.

Your help is greatly appreciated.

Answer 1

Best Answer - Chosen by Voters

I am from Venezuela. I hope that you understand my explanation:

On February 5, there is established this way a regime of exchange control, after an agreement signed by the Department of Finance, in representation of the National Executive and the Central Bank of Venezuela.

For the implementation of the above mentioned agreement, the President of the Republic, in Ministers' Council, decreed on February 05, 2003, the creation of the Commission of Administration of Currencies, Cadivi.

Cadivi is born with the mission to administer with efficiency and transparency, under technical criteria, the national foreign exchange market and assumes the challenge of contributing with their good executorship and the contest of other policies, to the achievement of the economic stability and the progress of the Nation, dedicated as sovereign principiles in the National Constitution of the Republic Bolivariana of Venezuela.

What is Cambio's Control? A control of change is an instrument of exchange rate policy that consists of regulating officially the purchase and sale of currencies in a country. Hereby, the Government intervenes directly on the market of foreign currency, controlling the income or capital exits.

The order of priorities would stay of the following way:

· The food products, medical supplies or medicines and, in general, those goods that are considered to be basic for the well-being of the citizenship.
· The remittances of dollars which the Venezuelan students possess(rely on) in the exterior, so much the scholars as those who pay your studies with private resources.
· The necessary funds to cancel the credit commitments of the nation in the exterior. Also the private debt, providing that it has been acquired before the approval of the exchange control.
· The necessary resources to acquire inputs or equipments that the local market does not give for the operation of the petroleum national industry.
· The currencies that are needed for trips and tourism in the exterior.
· The things and not indispensable services of luxury.

In conclusion:

In Venezuela everybody that need dollars for: To travel, to study in another country, to import all type of products; They to need to request or to proceed the dollars in CADIVI.

In venezuela the foreign exchange offices (Casas de Cambio) do not work.

In Venezuela the persons cannot sell dollars. Only Cadivi can sell dollars

Source(s):

http://www.cadivi.gov.ve