What is SICAD I and SICAD II? »Its Definition and Meaning [2019]

stands for the Complementary System for the Acquisition of Currency , a process proposed by the Minister of Planning and Finance Jorge Giordani , and the president of Central Bank of Venezuela Nelson Merentes, it consists of a substitute for already eliminated SITME ( Transactions System with Securities in Foreign Currency ) with which the The government intends to grant foreign currency (Dollars) to the companies that were left in the air after the elimination of the previous system, that is, the purpose of this system to supplement the procedure developed by CADIVI , Currency Management Commission in the Venezuelan territory , in order to grant the currencies for the correct functioning of the economy and import of the fundamental capitals for the people of Venezuela .

SICAD manages to differentiate itself from Sitme , in that That the latter had a rate that did not vary but remained stable at 5.30 Bs per US dollar, also did not refer to an auction; for its part, SICAD is a system that will oscillate at an implicit rate ; that will be executed through auctions that will be cited by the Central Bank of Venezuela three days before its completion. Such granting of currencies by SICAD will occur around every 15 days , where they can All natural persons and legal entities residing in Venezuela participate.

SICAD, now called SICAD I, arose in March 2013 after the elimination of Sitme in February of that same year; in an agreement by the Central Bank of Venezuela and the Ministry of Planning and Finance in exchange agreement No.21 with the main purpose of covering the demand for dollars and combating the parallel market .

A year later, that is, in March 2014 , the SICAD II was created, when the current President of Venezuela, Nicolas Maduro , signed a Law for the Execution of the Regime of Administration of Foreign Exchange and Illegal Exchange, which allows the entry into force of the exchange market.According to what is stated by the Mandatory the SICAD II is a new system that is attached to the Center National Foreign Trade or according to its acronym Cencoex.

SICAD II or Alternative Currency Exchange System , is based on the commissioning of foreign exchange commission operations, both in cash as in securities denominated in foreign currency, produced by the Republic, in each of its decentralized or other entities that can be public or private, national or foreign certified by the Central Bank of Venezuela (BCV) and Ministry for the Popular Power of Economy, Finance .