Since February 2015, Venezuelan gold reserves have been reduced by 50%. The Central Bank of Venezuela sold in the first quarter of 2016 16% of its gold reserves and 36% in the last 12 months as a measure to try to survive the collapse of its economy. Gold reserves of Venezuela have fallen to 6.24 million ounces in May 2016 against the 6.63 million ounces of gold that had the country in April, according to the International Monetary Fund-IMF. Venezuela sold in 2015 and 24% of its gold reserves. In June 2016, Switzerland imported 5.1 tons of gold from Venezuela and that could mean the fall of Venezuelan gold reserves is not over.
In late 2015, Venezuela had gold reserves of 8.77 million ounces. In February 2016, Venezuelan gold reserves fell to 7.67 million ounces and up to 7.4 million ounces in March 2016. According to estimates by the World Gold Council-WGC (World Gold Council) gold reserves Venezuela represent 66% of foreign exchange reserves of the country in May 2016.
A fund established last week by eight Latin American central banks to lend money to Venezuela worth 482,500 million dollars will not be enough to solve the problem of the chronic shortage of dollars and deficit in its balance of payments. Inflation in Venezuela is exploding, with IMF estimates ranging up to 720% by 2016. Only in November and October this year, Venezuela must pay 5,000 million dollars of its debt. Unless China to intervene and save Venezuela, it is likely that a default occurs.
Citibank closes forex accounts of Venezuela what about Venezuelan gold reserves ?
A year ago, the Central Bank of Venezuela insisted , with a currency swap with Citibank, 1.4 million ounces of gold from its gold reserves. Citibank recently announced the closure in 30 days, forex accounts in US Central Bank of Venezuela and the Bank of Venezuela (the largest state-owned commercial bank of Venezuela ) .
Nobody knows what will happen to the gold reserves of Venezuela that , that swap transaction for physical gold , are stored in a vault of the choice of Citi and may be controlled by the bank itself. So any vagary on the future of Venezuelan gold may well materialize or fall short .