Supreme Court declares unconstitutional reform of Law of Central Bank of Venezuela

Hace 2 años.

Through a sentence of 31.03.2016, the Constitutional Chamber of the Supreme Justice Court, in exercise of the preventive control of the constitutionality of laws, under Article 214 of the Fundamental Text,  declared as unconstitutional the Law of Partial Reform of Decree no. 2,179 with Rank, Value and Force of Law of Partial Reform Law of the Central Bank of Venezuela, enacted by the National Assembly on March 3 this year. A requirement that was requested by the President of the Republic, citizen Nicolas Maduro Moros, by a letter entered on date 17/03/2016.

In its motivation, the chamber made a comparative study of the constitutions of countries that enshrine their central banks as public and autonomous institutions, concluding that, in most cases, the appointment of its authorities is vested in the National Executive.

The Constitutional Court declared that the law passed by the National Assembly contravenes the provisions of the eighth cardinal of the Fourth Transitional Provision of the Constitution, since the reform aims to attribute to the National Parliament powers to appoint, ratify and remove the President and other directors of the BCV (Central Bank of Venezuela), regardless of the constitutional principles.

Furthermore, the maximum interpreter of the Constitution established that, with the proposed reform, the National Assembly incurs in misuse of its power, to pursue purposes other than those which are constitutionally permissible, because, they revealed that their aim is to take administrative control of the issuing Institute, which is an attack against the autonomy of the BCV and therefore the stability of the national economy.

This circumstance is more burdensome when trying to make nugatory the powers of the National Executive in the context of a validly enacted economic emergency.