Venezuela Central Bank Gold Reserves Plunged to Hit 50-Year Lows

SEATTLE (Scrap Monster): The gold reserves in Venezuela’s central bank plunged to hit lowest level in nearly 50 years. The quantity of gold bars at the bank vaults has dropped by 7 tonnes during the previous year. The gold holdings totalled 79 tonnes equivalent at the end of 2021. This compares with the holdings of 86 tonnes equivalent at the end of 2020.

The value of gold reserves recorded sharp dip by $493 million during the previous year, mainly driven by sharp fall in prices of the yellow metal. The value through December last year stood at $4.56 billion. The estimates by the Venezuelan central bank indicate that average gold prices witnessed sharp decline from $1,833.76 per troy ounce in 2020 to $1,799.48 per troy ounce in 2021.

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The central bank holdings have been maintained at levels in excess of 300 tonnes for several decades. However, the country started utilizing gold in vaults as collateral for loans with international banks. The sanctions imposed by the U.S. have cut crude exports out of the country, which used to be the main source of income for the government. This ultimately led to gold being used as a funding source.

The bank authorities declined to provide details on utilization of gold reserves. The opposition in the country had alleged that gold had been sold previously in exchange for euros and U.S. dollars.