Venezuela wants to sell even more gold?

Venezuela's central bank withdrew eight tons of gold from its vault last week, according to reports Reuters based on two sources within the Venezuelan government. It is expected that the government will sell the gold to obtain foreign currency. The country needs these to import goods from abroad.

Due to the US sanctions, it is becoming increasingly difficult for Maduro's government to get money. The country is cut off from the U.S. banking system and therefore has fewer opportunities to borrow money. Restrictions have also been imposed on the export of oil, Venezuela's main source of income. Partly because of these sanctions, the government is unable to defuse the crisis, which means that the government now also has to draw on reserves from the central bank.

'Venezuela without gold by the end of this year'

Since the beginning of this year, the central bank of Venezuela is said to have already sold 30 tons of gold. That means that there are still about 100 tons of gold in the vault, good for a market value of €3.7 billion. At the rate at which the country is now selling its gold reserves, the central bank's vault will be empty before the end of the year. The country also has 31 tonnes of gold in London, but the Bank of England refuses to release it for the time being.

A spokesman for the U.S. State Department said in a statement to Reuters that the United States condemns all attempts by Maduro to sell the population's reserves. "We encourage all companies, banks and other entities inside and outside the United States not to participate in the sell-off of Venezuelan reserves by the former Maduro regime."

In February, Maduro's government sold a similar amount of gold. Last year, the country sold precious metals to Turkey, but a sale of 29 tons to the United Arab Emirates was thwarted by sanctions. The oil state wanted 29 tons of gold from Venezuela take over, but that deal fell through.

Economic crisis

Venezuela's economy has been in an economic crisis for six years. Due to hyperinflation, money has become virtually worthless. That they are now Selling gold The writing is on the wall, because that is normally the last reserve that countries use to get money. The country has also already accepted humanitarian aid from Russia.

The United States and its allies are pushing for President Maduro to leave and have recognized opposition figure Juan Guaido as his successor. However, the population of Venezuela is divided. Not everyone is happy with Maduro, but even fewer Venezuelans are waiting for foreign interference.