Venezuela Adjusts Dollar Quota For Travel Abroad

CARACAS (Dow Jones)--The Venezuelan government adjusted, based on destination and duration of the trip, the legal limit on dollars that Venezuelans can buy at the official exchange rate for travel abroad.

The new scheme will likely make it more difficult for Venezuelans to profit from the gap between the official and parallel exchange rate by buying dollars from the government at the VEF2.15 peg and selling them in the parallel market at a rate which stands at VEF5.6.

Venezuelans who travel to Europe, Asia, Africa or Australia have the highest quota and will be able to use $2,000 for trips lasting one to seven days. For trips lasting longer than eight days the quota is $3,000.

The previous rules established a $2,500 limit regardless of the destination or length of the trip. Now travelers making short trips to countries in the Caribbean or Panama, some of Venezuelans' favorite destinations to profit from their dollar quota, will receive $500. The limit is set at $1,000 for these destinations.

Venezuelans making short trips to Colombia will be able to use $300 and a maximum of $1,000 for trips lasting more than eight days. Other destinations, including the United States and South America, have a minimum quota of $1,000 and maximum of $2,500.

The government has restricted the sale of dollars at the official rate of VEF2.15 to deal with a decline in oil revenue, which accounts for about 50% of state income.

-By Darcy Crowe, Dow Jones Newswires; (58) 414 249 6821; darcy.crowe@dowjones.com

Source: wsj.com/