ALBA’s Currency Grows
Seventy-seven companies from ALBA member countries have used the Sucre compensation system for $144 million worth of trade transactions during the first half of this year, a Venezuelan central bank official announced.
This makes it likely that the goal of $300 million will be reached by the end of this year, Central Bank Vice President Eudomar Tovar said. The total volume of Sucre-based transactions in the second half of 2010 was $40 million; only six companies participated during that half year.
The Sistema Unico de Compensacion Regional (Sucre), phased in last year, has been used by entities from Cuba, Ecuador, Bolivia and Venezuela, for purchases of palm oil, textiles, medicine, veterinary products, tires, paper scraps, plastic, books, tuna fish, urea, rice, powdered milk, and automobiles, among others. While it adds red tape to transactions, the Sucre also eliminates the use of US dollars, whose purchase can make transactions more expensive.