As Venezuela Prepares to Dump Dollar, Caracas Moves to Repatriate Gold from Bank of England

Venezuela is looking to repatriate 14 tonnes of gold from the Bank of England as US-led sanctions target their international assets, Reuters has reported.

The move, which will bring around US $550 million of international reserves back under Caracas’ control, was initiated two months ago by the Central Bank of Venezuela (BCV), according to an unnamed official source. No official statements have been made by either the BCV or the Bank of England, who cite client privacy rules for their silence.

According to the sources, the gold is yet to make the journey back to Caracas as the BCV is still organising insurance for the trip. “The insurance is still being sought, it is very costly,” the news agency was told.

Sintesis Financiera economist Tamara Herrera claims that the measure is a direct response to US and EU sanctions which have frozen a series of Venezuelan bank accounts and assets.

“This decision to bring the gold back [to Venezuela] shows the preoccupation which the government has of a potential asset-freeze if sanctions increase,” she told Reuters.

The UK’s conservative government has supported EU sanctions and imposed its own separate arms embargo on Caracas this year. They have also increasingly made interventionist statements regarding the country, including not recognising the May 20 presidential election result.

The reported initiative follows a recent trend by Venezuela to take back control of its national reserves and move away from US- and dollar-controlled financial institutions.

Ex-President Hugo Chavez repatriated 160 tonnes of gold between 2011 and 2012, most of which were located in vaults of the USA and Europe. Internationally held reserves are often used as collateral for loans, trade deals, or to manage international payments.

Recent BCV figures indicate that Venezuela currently has US $8.7 billion in international reserves, two-thirds of which are held in gold bars.

The US announced further sanctions against Caracas this week, which target its growing gold trade. President Maduro described the measures as “crazy” and “criminal” whilst declaring that Venezuela is sitting on the world’s second largest gold reserves.

The latest sanctions add pressure to an already isolated Venezuelan government, which has denounced that previous US sanctions, which target financial transactions and debt, have blocked or delayed vital international payments for medicine and food imports.


EU extends sanctions

Following Washington’s announcement, the European Union also voted to extend its sanctions against the Caribbean country this week.

The European Council voted in favour of extending existing sanctions, which do not include those targeting the gold trade, for one year, due to what it describes as “the continuing deterioration in the Venezuelan situation.” The European body added that these measures are “intended to bring political stability to country.”

Whilst the EU is yet to levy financial sanctions on Venezuela, it has alongside Switzerland, targeted a number of high-level functionaries, including President Maduro, and imposed an arms embargo.

As a response to US and EU sanctions, Maduro’s government has increasingly looked to trade and secure credit from countries not aligned with the US, such as China, Russia, and especially in the case of gold, Turkey. In July this year, Venezuela sent a significant part of the 9.1 tonnes of gold produced in Venezuela during the first six months of 2018 to Turkey for refining. In September a further US $900 million worth of gold was sent for refining, upon which it will be returned to the BCV.

“[The gold certification] we use to do in Switzerland, and now we don’t,” stated Ecological Mining Minister Victor Cano in July. “We will do it in allied countries because imagine if we sent the gold to Switzerland and then we were told that it is to stay there because of sanctions,” he continued.

Venezuela is also looking to switch trading currencies away from the US dollar to Euro, Yuan, or cryptocurrencies such as the Petro, which became available to all Venezuelans this Monday as a savings plan. This follows a recently announced gold savings plan for Venezuelans, as the government attempts to offer stable savings as a way of combating hyperinflation in the country.

Top Photo | Gold bars sit inside a military plane before being taken to Venezuela’s Central Bank, at Carlota military airport in Caracas, Venezuela. Ariana Cubillos | AP

Source | VenezuelaAnalysis

The post As Venezuela Prepares to Dump Dollar, Caracas Moves to Repatriate Gold from Bank of England appeared first on MintPress News.


Dear friends of this aggregator

  • Yes, I intentionally removed Newsbud from the aggregator on Mar 22.
  • Newsbud did not block the aggregator, although their editor blocked me on twitter after a comment I made to her
  • As far as I know, the only site that blocks this aggregator is Global Research. I have no idea why!!
  • Please stop recommending Newsbud and Global Research to be added to the aggregator.

Support this site

News Sources

Source Items
WWI Hidden History 50
Grayzone Project 95
Pass Blue 164
Dilyana Gaytandzhieva 14
John Pilger 416
The Real News 367
Scrutinised Minds 29
Need To Know News 2312
FEE 4309
Marine Le Pen 319
Francois Asselineau 25
Opassande 53
HAX on 5July 220
Henrik Alexandersson 811
Mohamed Omar 345
Professors Blog 10
Arg Blatte Talar 40
Angry Foreigner 18
Fritte Fritzson 12
Teologiska rummet 32
Filosofiska rummet 98
Vetenskapsradion Historia 147
Snedtänkt (Kalle Lind) 209
Les Crises 2549
Richard Falk 152
Ian Sinclair 98
SpinWatch 58
Counter Currents 8420
Kafila 416
Gail Malone 34
Transnational Foundation 221
Rick Falkvinge 94
The Duran 9325
Vanessa Beeley 93
Nina Kouprianova 9
MintPress 5509
Paul Craig Roberts 1602
News Junkie Post 58
Nomi Prins 27
Kurt Nimmo 191
Strategic Culture 4542
Sir Ken Robinson 20
Stephan Kinsella 89
Liberty Blitzkrieg 840
Sami Bedouin 63
Consortium News 2489
21 Century Wire 3403
Burning Blogger 324
Stephen Gowans 84
David D. Friedman 149
Anarchist Standard 16
The BRICS Post 1504
Tom Dispatch 490
Levant Report 18
The Saker 4060
The Barnes Review 512
John Friend 437
Psyche Truth 146
Jonathan Cook 135
New Eastern Outlook 3701
School Sucks Project 1765
Giza Death Star 1810
Andrew Gavin Marshall 15
Red Ice Radio 601
GMWatch 2156
Robert Faurisson 150
Espionage History Archive 34
Jay's Analysis 904
Le 4ème singe 90
Jacob Cohen 206
Agora Vox 14357
Cercle Des Volontaires 430
Panamza 2040
Fairewinds 111
Project Censored 918
Spy Culture 481
Conspiracy Archive 75
Crystal Clark 11
Timothy Kelly 545
PINAC 1482
The Conscious Resistance 777
Independent Science News 74
The Anti Media 6446
Positive News 820
Brandon Martinez 30
Steven Chovanec 61
Lionel 287
The Mind renewed 439
Natural Society 2607
Yanis Varoufakis 939
Tragedy & Hope 122
Dr. Tim Ball 104
Web of Debt 138
Porkins Policy Review 401
Conspiracy Watch 174
Eva Bartlett 586
Libyan War Truth 319
DeadLine Live 1909
Kevin Ryan 62
Aaron Franz 218
Traces of Reality 166
Revelations Radio News 121
Dr. Bruce Levine 140
Peter B Collins 1505
Faux Capitalism 205
Dissident Voice 10344
Climate Audit 222
Donna Laframboise 415
Judith Curry 1111
Geneva Business Insider 40
Media Monarchy 2265
Syria Report 78
Human Rights Investigation 91
Intifada (Voice of Palestine) 1685
Down With Tyranny 11349
Laura Wells Solutions 43
Video Rebel's Blog 424
Revisionist Review 485
Aletho News 19654
ضد العولمة 27
Penny for your thoughts 2906
Northerntruthseeker 2290
كساريات 37
Color Revolutions and Geopolitics 27
Stop Nato 4699 Blog 2951 Original Content 6697
Corbett Report 2256
Stop Imperialism 491
Land Destroyer 1162
Webster Tarpley Website 1068

Compiled Feeds

Public Lists

Title Visibility
Funny Public