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Venezuela Considers Exchanging Its Gold for US Dollars

By: PanAm Post Staff - Sep 26, 2013, 6:26 pm

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 »