International reserves fall 8% due to transfers to Fonden

Venezuela's international reserves have declined 8% so far this year due to several factors, including the transfers made by the Central Bank of Venezuela (BCV) to the National Development Fund (Fonden).

Central bank data shows that BCV transferred USD 500 million to the development fund on Friday. Therefore, the fund has already received USD 1 billion from the BCV in a month.

After these transfers and other transactions made by the BCV, Venezuela's international reserves stand at USD 27.5 billion, while they amounted to USD 29.8 billion at the end of 2011.

President Hugo Chávez said in December that the appropriate level of international reserves is USD 26.8 billion. He also said that any amount in excess of that ceiling should be transferred to Fonden.

The BCV has planned a USD 2 billion transfer, although the BCV law states that the bank can make two transfers a year. In the past six years, the BCV has sent USD 40.3 billion to Fonden.