In addition to currency fluctuations, Avon is vulnerable to the policies of foreign governments in the countries in which it operates. Notably, Avon faces currency transfer restrictions in venezuela as the Venezuelan government has been implementing and intensifying currency restrictions since 2003. At present, Avon's subsidiary in Venezuela is unable to exchange local currency for USD through the government. As a result, Avon is forced to use a third party to exchange the currency, which burdens it with an increased cost to obtain all imported products necessary for production.