Venezuela’s Central Bank Gold Reserves Hit Five-Decade Low

SEATTLE (Scrap Monster): The South American nation of Venezuela has been home to one of the largest in-ground gold reserves in the world. Moreover, it has been holding one of the largest reserves of monetary gold at its stashes. However, the country is reportedly offloading its gold reserves, to meet both ends together. Of late, the country has figured itself in the list of countries that have sold the most gold in recent years.

The 2020 financial statements indicate that gold reserves by the Venezuelan central bank recorded a decline by almost 12 tonnes during the past six months to hit the lowest level in five decades. This is mainly due to sale of its gold reserves by the Nicolas Maduro administration to overcome the economic crisis caused by decline in revenue from oil production and the ongoing impacts of the U.S. sanctions on the country.

The central bank gold holdings fell by as much as 19 tonnes during the entire year 2020. The gold holdings stood at 86 tonnes at the end of the previous year, said official data. However, the value of gold holdings recorded a surge by $60 million from June 2020 to $5.1 billion in December, aided by rising gold prices.

It must be noted that Venuzuela’s gold reserves hovered around 300 tonnes until 2015. However, the country started to consume gold as collateral for obtaining foreign loans from international banks.

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