Known Issue 126

Venezuela losses with v10 default currency rate table are overstated when viewed in non-Venezuela currency.

Issue ID	126
Summary	Venezuela losses with v10 default currency rate table are overstated when viewed in non-Venezuela currency.
Description	A change by Venezuela in October 2021 to redenominate the Venezuelan Bolivar Soberano (VES) by removing 6 zeros from the currency is overstating the strength of the Bolivar against other currencies in Touchstone Re loss results. The VES currency is valued at 100,000 times the Venezuelan Bolivar Fuerte (VEF) and the v10 default rates have 5 decimal place difference between the two rates. We recommend increasing that to an 11 decimal place difference to better reflect industry and company loss values in USD and other currencies. Industry and company loss files (ILF + CLF) are denominated in VEF.
Resolved in	Touchstone Re 11.0, Default currency rate set in v11.0 has an 11 decimal place difference between VES and VEF
Date posted	9/8/2022
Software versions affected	10.0
Feature set	Loss analysis
Models
Potential for loss numbers impact	Yes
Workaround	Set currency rate for the VEF that moves the decimal point 11 places to the left of the VES in a custom currency rate table. So if the VES rate is 0.217460, the VEF should be set to 0.00000000000217460. Also, losses are accurate when viewed in VEF or VES currency with default table.