The creation of the Banco Central de Venezuela was preceded by great political, social and economic changes globally. The Bank was established on the basis of a law promulgated on September 8, 1939. The bank is headquartered in Caracas.
The bank is a legal body subject to public law and has full autonomy. It has the independence of devising and executing policies on its own. The fundamental objectives of the bank are to achieve and maintain price stability in the country and sustain the internal and external value of the currency in order to ensure the healthy growth of the economy.
As the central bank of the country, the Central Bank of Venezuela is in charge of the following functions:
- Formulate and implement the monetary policy
- Devising the foreign exchange policy and executing it
- Regulate the credit and interest rates of the financial system
- Regulate the currency and promote the adequate liquidity of the financial system
- Regulate the foreign exchange market in the country
- Supervise the country’s payment system and ensure their smooth functioning
- Issue the national currency and regulate its circulation’
- Advise the national public powers
- Participate in and regulate the activities of the national gold market
- Compile and publish the main economic, monetary, and financial, exchange price and balance of payment statistics
- Perform other operation and services as is usual to the central banking activities
The administration of the Banco Central de Venezuela is in the hands of a Board of Directors. A president heads the Board. The Board of Directors consists of seven members including the president.