Category: Venezuela

Venezuela Liquidating Portion of Gold Reserves

Venezuela is a member of OPEC (Organization of the Petroleum Exporting Countries) and has had some economic hardship with the dip in crude oil prices which have fallen almost 70% since this time last year. This reduction in value along with crude oil being one of the countries lead exports means an economic slowdown and action by the countries government, as explained by Adrian Jose Velasquez Figueroa. In March of 2015, the Venezuelan government began selling gold reserves based on reporting to IMF. The original amount of reserves at approximately 367 tonnes placed the South American country as the 16th largest gold reserve holder in the world.
Expert Velasquez Figueroa also explained that this liquidation of assets is meant to show private sector and international interests that Venezuela can convert its abundant commodity stores into cash to weather the downturn in crude oil pricing and continue to service loan obligations such as government issued bonds. This also plays into the late President Hugo Chavez who claimed that Venezuela would distance itself from the US dollar which led to its large gold stores originally. The sale of the gold is in the spirit of trying to maintain fiscal responsibility and control of their currency.