Central Bank's president: Gold sale ensures profits
As much as 70% of Venezuela's international reserves are kept in gold while 30% is comprised by cash to be used to pay imports and honor the public debt
The Central Bank of Venezuelan (BCV) sold 4.9 tons of gold out of its reserves. Nelson Merentes, president of the institution, said operations as such yield profits to the bank.
The BCV's president stressed that the gold price has been on the rise since 2006. Today it is worth USD 1,720 per ounce. Thus, said upward trend favors transactions, Merentes noted.
"Considering the price of gold, two things are good for the Republic: selling it or accumulating as international reserves."
The BCV's president specified that the institution buys gold in local currency (bolívares) at USD 900 and then it sells it at USD 1,700. "They all do the same; all banks must generate profits."
"That is not capitalism. That means being efficient. If gold price plummets, there will be gains," the minister clarified. He underscored that the BCV has recovered the gold tons it sold. This year it will be receiving 6-7 tons of gold and next year, some 15 tons.
The BCV keeps 366 tons of gold according to information provided by its president. Some 50 tons have been deposited in foreign banks and the rest (Nearly 310 tons) are at the BCV's safe.
As much as 70% of Venezuela's international reserves are kept in gold whereas 30% is comprised by cash to be used to pay imports and honor the public debt.
Translated by Jhean Cabrera
That political protest in Venezuela has lost momentum seems pretty obvious: people are no longer building barricades to block off streets near Plaza Francia in Altamira (eastern Caracas), an anti-government stronghold; no new images have been shown of brave and dashing protesters with bandanna-covered faces clashing with the National Guard in San Cristóbal, in the western state of Táchira; and those who dreamed of a horde of "Gochos" (Tachirans) descending in an avalanche to stir up revolt in Caracas have been left with no option but to wake up to reality.