Caracas Stock Exchange (BVC)
What Is the Caracas Stock Exchange (BVC)?
The Caracas Stock Exchange (BVC), quite possibly of the littlest stock exchange in Latin America, is situated in the capital city of Venezuela.
Albeit the United Socialists of Venezuela have been the ruling party starting around 2010, some private ownership of property and organizations is permitted.
The exchange is known as the Bolsa de Valores de Caracas (BVC) in Spanish.
- The Caracas Stock Exchange, one of Latin America's littlest, records nearly 60 stocks issued by Venezuelan companies.
- The IBC Index mirrors the value of 11 Venezuelan stocks.
- Trades are priced in bol\u00edvar soberano, the national currency of Venezuela.
Understanding the Caracas Stock Exchange (BVC)
The Caracas Stock Exchange records the stocks of around 60 companies.
The primary check of the value of companies traded on the Caracas Stock Exchange is the IBC Index, likewise alluded to as the General Index, which comprises of the stocks of 11 companies.
It is a capitalization-weighted index that tracks the value of the most often traded companies in Venezuela, including Banco Nacional de Cr\u00e9dito and Banco Provincial.
The Bolivar Soberano
All trading is in the bol\u00edvar soberano (VES), which has been the national currency beginning around 2018, having supplanted the bol\u00edvar fuerte, which had been rendered valueless by hyperinflation. As of July 10, 2021, the exchange rate was 3,256,602 bol\u00edvar soberano to one U.S. dollar.
The National Securities Commission is the Venezuelan regulatory body entrusted with controlling the listing, sale, and trading of securities in Venezuela.
Exchange Hours
The trading day for equities at the Caracas Stock Exchange is broken up into three sessions. The pre-opening runs from 8:30 a.m. to 9:00 a.m.; the market session is from 9:00 a.m. to 1:00 p.m, and the post-shutting runs from 1:00 p.m. to 1:30 p.m.
Fixed income securities are traded from 8:30 a,m, to 1:00 p,m.
The Caracas Stock Exchange and the Venezuelan Economy
The Caracas Stock Exchange follows its foundations to 1805 when the country was still part of the Spanish Empire. That year, Don Bruno Abasolo y Don Fernando Key Mu\u00f1oz founded a trading house in Caracas that developed into the exchange that is still in presence today.
The institution known as the Caracas Stock Exchange was first registered in 1947 and comprised of 22 seats.
The Venezuelan economy is exceptionally dependent on oil exports, as energy production contributes altogether to the country's gross domestic product. The U.S, as a matter of fact. Council based on Foreign Relations conditions Venezuela a "petrostate," and breaks down its spiraling economic and compassionate crisis in those terms.
The oil sector is overwhelmed by Petr\u00f3leos de Venezuela, the state-owned oil and natural gas company founded in 1976 after the government nationalized the oil industry. The company provides the government of Venezuela with about half of its incomes, and the economic fortunes of most Venezuelans rise and fall in light of the price of oil.
This dependence on oil was a key factor in the collapse of Venezuela's economy that started in 2015 with the decline in global oil prices.
The IBC Index declined 99.63% in the main half of 2021.
