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| Caribbean-Latin America |
| Venezuela Plans to Move Reserve Funds |
| 2011-08-18 |
| Venezuela plans to transfer billions of dollars in cash reserves from abroad to banks in Russia, China and Brazil and tons of gold from European banks to its central bank vaults, according to documents reviewed Tuesday by The Wall Street Journal. The planned moves would include transferring $6.3 billion in cash reserves, most of which Venezuela now keeps in banks such as the Bank for International Settlements in Basel, Switzerland, and Barclays Bank in London to unnamed Russian, Chinese and Brazilian banks, one document said. Venezuela also plans to move 211 tons of gold it keeps abroad and values at $11 billion to the vaults of the Venezuelan Central Bank in Caracas where the government keeps its remaining 154 tons of bullion, the document says. Venezuelan officials were tight-lipped. Representatives of the ministry of finance and the central bank said there was no official comment, and no one was authorized to address the issue. Lately, senior Venezuelan officials have criticized Venezuela's dependence on the dollar. Last Saturday, Venezuelan Foreign Minister Nicolas Maduro said the world's financial system, based on the dollar, "had entered into a crisis of uncertainty and we are planning to construct a new international monetary system, and especially in South America, protect ourselves from this situation," he said. The Bank of England recently received a request from the Venezuelan government about transferring the 99 tons of gold Venezuela holds in the bank back to Venezuela, said a person familiar with the matter. A spokesman from the Bank of England declined to comment whether Venezuela had any gold on deposit at the bank. |
| Posted by:tipper |
| #11 Dale, Don't believe any reserve numbers generated by KSA. I don't know what their reserves are, but they've been overstated for years (IMNSHO.) |
| Posted by: Glenmore 2011-08-18 19:46 |
| #10 The cash is being moved to Russian and Chinee to ensure that their accounts receivable will be safe. The gold is being moved to the central bank to avoid seizure in judgement of their various and sundry nationalization arbitration cases. |
| Posted by: S 2011-08-18 17:05 |
| #9 tipper that is interesting.They are finding oil everywhere. Last year they found a record amount around the world. The thing I don't understand is they have been pumping oil now out of Saudi Arabia for how long and their estimated reserves only increase year by year. |
| Posted by: Dale 2011-08-18 16:57 |
| #8 Hugo is watching what's happening to Gaddafi who was engaged with the West only to find all his wealth frozen and transferred to the "rebels" The central factor is the oil discovery in the Orinoco belt region which appears to have reserves twice as large as the Soddies.Hugo is moving as fast as he can to nationalise the oil field, hence the need to protect against legal challenge by the existing lease holders. The US has shamelessly protected Soddie interests for the last 60 years and the Soddies have adopted a faux Western stance. China and Russia are moving into the vacuum created by all this manoeuvring. |
| Posted by: tipper 2011-08-18 16:28 |
| #7 What would you do with your ill gotten gains? Move to Russia, China or Brazil carrying as much as you can with you? Some call it 'cashing out'. |
| Posted by: Mullah Richard 2011-08-18 16:20 |
| #6 ...how about... Hugo's time is short. There is no clear successor. That in the coming power struggle, info leaks that compromises the entire upper echelon with being deep in dodo with FARC. The Colombians are mad enough to seek retribution [re: invade/occupy] or massive compensation. There is no 'good' cop whose around to provide enough force to protect you. What would you do with your ill gotten gains? |
| Posted by: Procopius2k 2011-08-18 15:30 |
| #5 Good point about the potential 'misbehavior(s)' that 'Ugo may be concerned about in his expected passing, Mitch. Might want to pay off the creditors as Dale states (although as to why is the question if he'd be gone - can't believe he is that honorable). It may not be him ordering these transfers, which says something else entirely. I'll be curious to see what the next few weeks bring. |
| Posted by: Mullah Richard 2011-08-18 13:48 |
| #4 Mitch H Hello!. Yes that sounds possible. If he is terminal and he knows it plus he just got back from Cuba makes you think. He owes Russia and China big time for all the procurements. I have always understood that there is some degree of shock to deal with in any serious injury. He may not be thinking clearly. Paranoia perhaps. The meds may work on the mind as well. I doubt his staff will question his mental state face to face. |
| Posted by: Dale 2011-08-18 13:27 |
| #3 Or else some sort of paranoid preparation in advance of some misbehavior which might provoke the freezing of accounts? Like a coup in the wake of an expected and sudden expiration of Chavez? |
| Posted by: Mitch H. 2011-08-18 12:23 |
| #2 Mullah Richard - JUST what I was thinking. Mike |
| Posted by: Mike Kozlowski 2011-08-18 10:15 |
| #1 Hugo (or some subordinates) getting ready to 'cash out'? |
| Posted by: Mullah Richard 2011-08-18 08:53 |