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
Some 50 tons of gold have been deposited in foreign banks (Photo: AVN)
MAYELA ARMAS H. | EL UNIVERSAL
Thursday November 08, 2012 10:58 AM
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
Oil and gas; gold and diamonds; coltan, coal, iron, bauxite, copper: the Venezuelan economy is extractive, as it relies on taking mineral substances from the earth for sale or trade.