Citigroup sells gold from Venezuela

Citigroup plans to sell gold from Venezuela, it says Bloomberg. It concerns gold that is part of a swap construction from 2015. The central bank then staked the precious metal as collateral for a $1.1 billion loan. The term of this loan expired earlier this month, and the government of Venezuela does not have enough financial resources to repay it. As a result, the gold will benefit Citigroup and the bank will be allowed to use the Selling precious metals.

The sale of the gold is a setback for the government of Venezuela. Due to the increase in Gold price the value of the precious metal has increased by $260 million. Citigroup wants to transfer that amount to a U.S. central bank account, which is not accessible to Maduro's government. There is a chance that the amount of money will be released to Juan Guaido, who has been designated as president of Venezuela by the United States and its allies. He can use the money to strengthen his power and influence in the country.

Venezuela assets blocked

According to the National Assembly of Venezuela, the Maduro government has $3.2 billion in assets abroad. These funds are spread over twenty US bank accounts, but due to the sanctions, they are not accessible to the government. The government also has gold reserves abroad, but they are not released. Earlier this year Refused the Bank of England to deliver $1.2 billion worth of gold.

Last year, Maduro sold more than 40% of the national gold reserve to pay creditors. Several shipments of gold were Sold traders in Turkey and the United Arab Emirates. That, too, is becoming increasingly difficult, now that the United States has imposed sanctions on the country's largest gold producer. According to this state-owned gold producer, Maduro needs this revenue to pay the military.

Venezuela's central bank still has $8.7 billion in reserves, but they consist largely of physical gold. Part of it is at the Bank of England in London, beyond the reach of Maduro's government. Venezuela's central bank is said to be considering objecting to Citigroup's gold sale. According to the central bank, the fact that the central bank was unable to repay the loan this month is the result of the US sanctions. As a result, foreign banks are not allowed to release the government's assets.

Also Read:

• Venezuela exported 20 tonnes of gold to Turkey this year (July 20, 2018)
• Venezuela in talks with Bank of England about repatriation of gold (December 11, 2018)
• Venezuela can't get gold out of the UK (January 25, 2019)
• Where does Venezuela's gold go? (February 1, 2019)