An estimate from June found that Venezuela had approximately US$2.6 billion worth of gold deposited in international reserves. Currently, however, Venezuela’s central bank (BCV) is focused on increasing its liquid reserves, and is therefore considering a release of gold as collateral for US dollars.
That is not surprising, since Venezuela’s international liquid currency reserves recently reached an historic low of US$1.3 billion. By using its gold as collateral, its liquid reserves would increase markedly and allow the Venezuelan government to provide a greater supply of USD and alleviate current currency shortages at the fixed exchange rate.
Source: El Universal. Read More »