Dataline: Accounting Implications of Recent Events in Venezuela (No. 2010-29)

Dataline 07/19/2010 by Assurance services

In May 2010, the government of Venezuela effectively eliminated the indirect market of foreign currency exchange (referred to as the “parallel” market). On June 9, 2010, several large Venezuelan commercial banks began operating the Transaction System for Foreign Currency Denominated Securities ("SITME"). Continued use of the parallel market rate for re-measurement of bolivar denominated transactions is no longer acceptable. This Dataline provides an update on Venezuela being considered a highly-inflationary economy.