Venezuelan currency creates a headache

Several major companies with operations in Venezuela are trying to prepare their annual income statements. Good luck.

The firms say that the Venezuelan currency has jumped around so much that doing accurate accounting is difficult.

One of these firms is Coca-Cola FEMSA, S.A.B. de C.V., the Mexican soft drink firm. The company reported that revenue grew 23.3 percent for the fourth quarter of 2014 and 24.7 percent for the full year.

But for income from Venezuela the company used an arbitrary 50 bolivars to the U.S. dollar. There are several exchange rates in the country.

Government authorities have clearly stated that the applicable exchange rate for the majority of the total imports of the country including food, medicines and other basic goods such as raw materials, will continue to be the 6.30 bolivars per U.S. dollar
rate, the company said.

Coca-Cola FEMSA said it continues to have access to this rate for raw material purchases. Coca-Cola FEMSA said it remains committed to the market and will continue producing, selling and distributing the products that Venezuelan consumers enjoy on a daily basis.

This entry was posted in Costa Rica News. Bookmark the permalink.