Fears are mounting in Venezuela that regulations designed to prevent currency speculation and capitalise the banking system could trigger the collapse of several banks and hit sovereign debt prices.

Banks are being forced to sell around $5.6bn in complex financial instruments known as ”structured notes” – payable in dollars but denominated in local currency – that in some cases are now worth as little as half what they paid for them, due to the rapid appreciation this year of the local currency, the Bolivar.