(9 Mar 2016) RESTRICTION SUMMARY: AP CLIENTS ONLY
AP TELEVISION - AP CLIENTS ONLY
Caracas, Venezuela – 09 March 2016
1. Miguel Perez Abad, Economic Vice President, arriving to news conference
2. Abad and other Economic government officers taking their seats
3. Miguel Perez Abad, Economy Vice Minister, ( Black suit, yellow tie, centre), Jose Khan, Deputy President, Central Bank of Venezuela,( Abad's right hand), Jesus Farias, Exterior Commerce Minister( right hand to Khan), Rodolfo Medina, Finance Minister, ( left hand to Abad), Eulogio del Pino, Oil Minister ( Left hand to Medina), Rodolfo Marco Torres, Food Minister ( left hand to Del Pino), during the presser
4. SOUNDBITE (Spanish) Miguel Perez Abad, Economy Vice Minister,
"Two types of changes are contemplated to implement this new system. A protected type of change, called the DIPRO is directed only to goods and services and remittances identified as priorities. It will begin with a quote of 10 bolivars per dollar, and gradually will be adjusted, considering the social impacts. This rate, this rate of change, seeks to preserve and protect the Venezuelan family, the productive sectors, especially the food sector and the pharmacy sector, which are covered under the plan 50 (the plan 50 is the last economic plan proposed by President Nicolas Maduro)."
5. Audience listening to Abad's speech
6. Various of Abad and government officers, signing the: "new exchange agreement"
7. SOUNDBITE (Spanish) Miguel Perez Abad, Economy Vice Minister,
"A second type of exchange, which we have named as the type of complementary change the DICOM, which will apply to all transactions not included under the protected type of change. It will fluctuate according to the economic dynamics of the country. One system, two exchange rates."
8. Abad and other Economic government officers, during the press conference
9. SOUNDBITE (Spanish) Miguel Perez Abad, Economy Vice Minister,
"It is very important to remember that Venezuela is in emergency, economic emergency that Venezuela has no solvency problems, we mean, Venezuela has sufficient assets and capabilities to succeed, we have a problem of cash flow, which forces us to create and recreate how we will develop the national economy."
10. Wide of Abad and other government officers, during the press conference
11. Various of Abad and others leaving
12. Venezuela central bank exterior of building
Venezuelan financial authorities announced Wednesday that the country has decided on a dual exchange rate system as a way to deal with the current cash flow issue, but stressed that it is not facing solvency problems.
Vice president of economics, Miguel Perez Abad, said during a press conference in Caracas, that one of the exchange rate systems will operate with a fixed rate of 10 bolivars to the dollar, while the second will fluctuate according to the dynamics of the economy.
The adjustments of the exchange rates, among other things, are the results of low oil prices, which finances 94 percent of the income received by the country's exports, Abad said.
The DIPRO system, or so-called protected exchange will be used mainly for food, medicine, raw materials and other products and services deemed essential.
Abad said the second system, known as DICOM, would be a complementary exchange system that would fluctuate according to the "country's economic dynamics," but offered few details.
Venezuela's economy shrank 5.7 percent last year while shortages of basic goods multiplied, adding to social tensions and undermining support for President Nicolas Maduro, whose socialist party lost congressional elections in December by a landslide.
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