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Venezuela sold part of its gold reserves again last week, according to reports Bloomberg. That means Maduro's government is still managing to evade U.S. sanctions. The central bank is said to have sold nearly a ton of gold on July 12, good for a market value of about $40 million. The country needs dollars to pay for the import of goods and therefore has to pay more and more Selling gold.
The sale of the gold caused the country's total reserves to drop to a new low of $8.1 billion. That is the lowest level in thirty years, but if you include inflation, the current situation is actually much worse. In recent years, the country has had to sell much of its foreign exchange reserve and gold reserves as revenues from oil exports have fallen.
Venezuela is grappling not only with a major economic crisis, but also with several U.S. sanctions. The United States wants Maduro to leave and has therefore imposed restrictions on Venezuela's gold, oil and banking sectors. Despite these sanctions, the country still manages to sell gold, including to traders in the United Arab Emirates and Turkey. Since the beginning of April, the central bank has already $570 million of gold.
Venezuela is the only country in the world that has sold its gold reserves on a large scale in recent years. Over the past five years, the country has put about 200 tons of the precious metal on the market. The end of this trend is not yet in sight, as the country still has major economic problems. However, it will not be possible to sell all the gold. Part of the stock is held by the Bank of England, which has seen the gold due to sanctions don't want to release.
Venezuela's reserves to new lows (Source: Bloomberg)
