This article needs to be updated.(June 2024) |
Bolsa de Valores de El Salvador | |
Type | Stock exchange |
---|---|
Location | San Salvador, El Salvador |
Founded | April 27, 1992 |
Owner | Central Securities Depository (CEDEVAL) |
Key people | Rolando Duarte (President) Valentín Arrieta (CEO) |
Currency | United States dollar (USD) |
No. of listings | 34 (2009) |
Market cap | US$4.8 billion (2023) |
Website | www |
The Salvadoran Stock Exchange (Spanish : Bolsa de Valores de El Salvador, BVES) is the stock exchange in the nation of El Salvador. [1] The exchange is used for the securitization of various government infrastructure projects. It is overseen by Central Securities Depository (CEDEVAL).
Rolando Duarte is the President, and Valentín Arrieta is the CEO. [2] [3] [4] [5] As of 2009 [update] , there were 34 companies trading on the exchange, the vast majority in finance or insurance businesses. [6]
A stock market was first established in El Salvador in 1965. [7] [8] It was closed on March 26, 1976, due to low levels of activity. [9]
The current stock market was established in April 1992, [6] three months after the Chapultepec Accords brought an end to the Salvadoran Civil War. The market grew from handling U.S. $600 million initially to more than U.S. $3.5 billion in 2011 [10] and more than $4.8 billion in 2023. [2]
In 2017, El Salvador and Panamá began to integrate their stock markets. Nicaragua joined this project in 2023. From 2017 to 2023, over U.S. $460 million has been traded between the Salvadoran and Panamanian exchanges. Honduras and Guatemala are expected to join this project in the future. [5]
The BVES is a member of the Federación Iberoamericana de Bolsas (FIAB), an organization of stock exchanges in Latin America, Spain, and Portugal. [11] In August 2023, BVES joined the Sustainable Stock Exchanges Initiative. [12]
The economy of El Salvador has experienced relatively low rates of GDP growth, in comparison to other developing countries. Rates have not risen above the low single digits in nearly two decades – part of a broader environment of macroeconomic instability which the integration of the United States dollar has done little to improve. One problem that the Salvadoran economy faces is the inequality in the distribution of income. In 2011, El Salvador had a Gini Coefficient of .485, which although similar to that of the United States, leaves 37.8% of the population below the poverty line, due to lower aggregate income. The richest 10% of the population receives approximately 15 times the income of the poorest 40%.
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