Venezuela has moved eight tons of gold from the central bank in an attempt to raise hard currency to help its cash-strapped economy hit by crippling US sanctions, according to government sources cited by Reuters.
There have been unconfirmed reports that the Venezuelan government has removed around 30 tons of gold from central bank vaults this year. Washington and the governments opposition have accused Caracas of trying to sell national gold reserves abroad. The US has threatened sanctions against any company attempting to buy Venezuelan gold.
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Speculation over Caracas trying to sell the gold comes amid the latest round of US sanctions that have severely hit Venezuelas oil sector – a key source of the countrys income. Venezuelas substantial gold holdings have become one of the few sources of hard currency, which is crucial for imports with the countrys crude sales severely restricted by Washington.
The current reserves of physical gold kept in the vaults of the Venezuelan central bank are estimated at 100 tons, worth over $4 billion, according to an unnamed government source, as cited by the news agency. The source expects the central banks reserves to be nearly depleted by the end of the year if Caracas continues at this pace.
Venezuelas economic crisis – with six years of a steep recession, hyperinflation, and massive shortages of basic goods – intensified after the counRead More
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