ANNOUNCEMENT 01 Jul 2010In July 2010, the government of Venezuela announced a change in the settlement of trade invoices.
NUMBER OF INTERVENTIONS
Resolution No. DM 2730 of 2010 (in Spanish),
Sistema Unitario de Compensaci?n Regional de Pagos (SUCRE),
On 1 July 2010, Venezuela's Ministry of Planning and Finance (Ministerio del Poder Popular de Planificación y Finanzas) adopted Resolution No. DM 2730 which implements the 'Sistema Unitario de Compensación Regional de Pagos' or SUCRE. The SUCRE is a trade-facilitating mechanism between Venezuela, Bolivia, Cuba, Ecuador and Nicaragua based on a virtual currency named 'sucre'.
SUCRE's role resembles that of an international clearing house. With SUCRE, all international payments are recorded in 'sucre' currency. Trading enterprises may use accumulated "sucre" balances to pay for future trade flows. The final settlements are paid in the local currencies.
This system shall facilitate international trade by reducing currency exchange risks and currency conversion costs. It also streamlines administrative procedures for international payments and reduces transaction costs.
This measure entered into force on the same day.