Tuesday , May 30 2023

Venezuela seeks 14 tonnes of gold on water


Over the past several decades, Venezuela has stored large amounts of gold in a country's central bank and foreign banks.

Over the past several decades, Venezuela has stored large amounts of gold in a country's central bank and foreign banks.

Managing Venezuelan currencies is becoming increasingly difficult because the US financial embargo tightens Nicolas Maduro's government efforts to lend money to the international market.

In addition, the Trump administration has issued a new sanction that prohibits US citizens from dealing with anyone involved in the sale of gold from Venezuela. This action is an attempt to exert additional pressure on the government of the city. Madura.

Accordingly, Venezuela is trying to place 14 tonnes of net gold stored in the Bank of England back to Venezuela, according to two sources familiar with the publication.

Accordingly, the Bank of England is also trying to understand what Venezuela wants with this gold, some bank officials said.

However, the central bank of Venezuela and the Bank of England refused to comment.

This plan will be applied for almost two months due to difficulties in securing shipments. In addition, the transport of such a large amount of gold also takes a lot of time and effort, said one of the officials.

"They are still trying to find the right insurer because the shipment is too high," the official said.

For five consecutive years, Venezuela has experienced a recession with annual inflation of more than 400,000, which has led to an increase in the rate of poverty and illness, leading to the migration of about 2 million people.

Maduro said his government was the victim of an "economic war" led by the opposition, followed by US sanctions. Critics of the country blamed the state economic model, the rigid control of the exchange and the nationalization of private companies.

Losing this gold would be a significant blow to Venezuelan finances. Lack of money can also lead to a shortage of basic goods from food to medicine and car parts.

But even if Venezuela recovers gold, new US sanctions can make sales difficult.

"If the government wants to take action on this gold, it will have to deal with allies in accordance with regulatory sanctions," economist Tamara Herrera said.

Selling gold directly from the Bank to English foreigners will be easier than transferring gold to Venezuela, and then selling them, but it could also place sanctions on Venezuela on the table.

Over the past several decades, Venezuela has stored large amounts of gold in central banks in the country and foreign banks, mainly in developing countries.

In 2011, Venezuela repatriated about 160 tons of gold from banks in the United States and Europe to the central bank in Caracas. But a large amount of Venezuelan gold remains in the Bank of England.

Starting in 2014, Venezuela has used this gold for swings, and Venezuelan global banks have set aside billions of dollars in gold.

Statistics from the Central Bank of Venezuela show that the amount of gold that the bank kept up to June this year reduced to 160 tonnes from 364 tonnes in 2014, when there were some agreements on the wedding that did not pay in Venezuela money to pay mortgage gold.

By 2017, such exchange agreements will become more difficult due to US sanctions.

Hong Van TheSynthesis)

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