In July 1994 the Venezuelan Government established an exchange system which included a single exchange rate set at Bs 170/US$1. A Foreign Exchange Administration Board was formed to manage the supply of foreign currency for import activities, payment and servicing of net foreign debt, and certain foreign transfers which included, among others, remittance of dividends, repatriation of capital and royalties. In addition, the exchange system required that any foreign currency obtained from exports and other operations be sold to the BCV. In December 1995 the Venezuelan Government modified the official exchange rate from Bs 170/US$1 to Bs 290/US$1. In April 1996 the free convertibility of the bolivar was reestablished in Venezuela and, subsequently, all controls and restrictions on exchange operations were lifted. In July 1996 the Venezuelan Government announced the establishment of a trading band for the bolivar. For 1997 the Venezuelan Government established an initial central parity of Bs 472/US$1, effective January 2, 1997, and a crawling band of 7.5% above and below the central parity. Between July 8, 1996 and August 4, 1997, the central parity increased by 1.32% per month. Between August 4, 1997 and January 13, 1998, the central parity increased by 1.16% per month. On January 13, 1998, the Central Bank of Venezuela modified the rate of increase of the central parity to 1.28% per month.