- Going forward, MercadoLibre (MELI) won't use Venezuela's SICAD 1 floating exchange rate (currently 10 bolivars per U.S. dollar) to account for local transactions, and will instead rely on the SICAD 2 rate (currently 50 bolivars per dollar).
- Mercado notes it's unable to access the SICAD 1 rate, and is more likely to settle transactions at the SICAD 2 rate. The company's Venezuelan forex accounting has frequently come under heavy criticism.
- A $47M-$57M re-measurement charge will be recorded in Q2, as will a $14.5M-$21.5M forex loss and a $6.5M-$9.5M deferred income tax gain. Venezuelan revenue is expected to be impacted by $12M-$18M.
- The announcement comes a day after eBay launched Spanish/Portuguese-language sites for Latin American shoppers.
- MELI -0.5% AH.
MercadoLibre to change Venezuelan forex accounting, record charge
From other sites
at CNBC.com (May 7, 2015)
at CNBC.com (Dec 23, 2014)
at CNBC.com (Aug 8, 2014)
at CNBC.com (Jun 12, 2014)
at CNBC.com (May 27, 2014)
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