Venezuela’s central bank sold nearly six tons of gold during the second half of last year as the country faced a severe shortage of foreign currency. The sales came amid tightening U.S. Restrictions on Venezuelan oil exports, a key source of revenue for the nation.
The financial statements published by the Banco Central de Venezuela (BCV) revealed the transactions, with the bulk of the sales occurring in December, according to estimates from the Caracas-based consultancy Síntesis Financiera. This move underscores the challenges Venezuela has faced in accessing traditional financial markets.
The gold sales coincided with a period of drastically reduced dollar inflows into the Venezuelan economy. The Trump administration had intensified restrictions on Venezuelan oil exports and seized its first oil tanker on December 10th. The resulting embargo disrupted the supply of dollars, driving the gap between official and parallel exchange rates to record levels and raising fears of a return to hyperinflation.
Still, following the capture of Nicolás Maduro on January 3rd by U.S. Special forces, Washington allowed some revenue from oil sales to return to the country, according to reports. This decision contributed to a revitalization of the official foreign exchange market and a narrowing of the exchange rate gap.
International Reserves Increased 30%
Síntesis Financiera reported on Monday that there have been no indications of further gold sales by the BCV in January.
Despite the reduction in gold reserves, Venezuela’s total international reserves increased by 30% in dollar terms last year. This increase was largely driven by rising gold and other precious metal prices.
Authorities also adjusted the period used to calculate the average price of the metal, which accelerated the reflection of the price increase in official balances. “That gave a sense of strength, and that’s why the evolution of total reserves rebounded so much,” Tamara Herrera, director of Síntesis Financiera, told Bloomberg.
Over the past 12 years, Venezuela’s gold reserves have fallen by more than 80%, according to data compiled by Síntesis Financiera. Some Venezuelan gold remains held at the Bank of England, but the country currently lacks access to those resources as the United Kingdom does not recognize the current government, dating back to 2019.
