ESPACIO PUBLICITARIO
CARACAS, Thursday February 21, 2013 | Update
 
|
share
|
ECONOMY

Venezuela's reserves down USD 2.36 billion so far this year

More US dollars are needed to speed up imports

Allocations of US dollars to the National Development Fund have diminished the US dollar availability for imports (File photo)
VÍCTOR SALMERÓN |  EL UNIVERSAL
Thursday February 21, 2013  10:08 AM
Venezuela's international reserves plunged 8% (USD 2.36 billion) in the first seven weeks of the year, standing at USD 27.37 billion by February 19.

Reserves are mainly comprised by gold. Therefore, there is much less cash available for duly authorized companies to buy US dollars to pay for imports.

In its latest report, think tank Síntesis Financiera said that Venezuela's liquid or cash reserves amount to USD 4.30 billion.

Although Venezuelan authorities will thoroughly review authorizations to buy US dollars in an attempt to avoid over-invoicing, available reserves are not enough to allow a proper flow of imports and, therefore, curb shortages of basic food products.

Under these circumstances, Venezuelan state-owned oil company Pdvsa or the National Development Fund (Fonden) need to sell larger sums of US dollars to the central bank in order to boost the country's international reserves.

It is worth noting that the Central Bank of Venezuela (BCV) is bound by law to transfer to Fonden, a fund administered by the Executive Office, any reserves exceeding the so-called optimum level: USD 26.80 billion.

Should this law continue in force, Venezuela's international liquid reserves will continue falling in the middle run.  

Translated by Jhean Cabrera
|
share
|
ADVERTISING SPACE
Dossier
Living with HIV/AIDS (II)

At first she agreed that I use her real name, that she had no problems with that at all. After all, living with HIV had driven her to help others – as a workshop facilitator giving talks and conducting seminars, or as a volunteer for local AIDS Service Organizations like Acción Solidaria (Solidary Action) and Mujeres Unidas por la Salud (Women United for Health, or Musa), a support group network for HIV-positive women. But when we were well into the interview, the realization that she might lose her private health insurance coverage made her change her mind.

fotter clasificados.eluniversal.com Estampas
Alianzas
fotter clasificados.eluniversal.com Estampas
cerrar