In a press conference yesterday (5/18/2010), the head of the Central Bank and the Minister of Economic Planing addressed the nation indicating that the implementing regulations will be issued within the next week, indicating that there will be a parallel market or a market with USD denominated securities organized by the Central Bank, under a platform that will guarantee no speculative pricing and under the intervention and control of the authorities, permitting the value of the securities, and thus, the rate of exchange of the USD to fluctuate within a band or range. They further announced that "Stock Brokerage Companies" (Casas de Bolsa y Sociedades de Corretaje) will be banned from participating in this market, indicating that investigations will follow to determine their potential responsibility for illegal speculation at the now banned "Permuta Market".
We will issue updates when the authorities and the Central Bank take the expected regulatory measures.
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