Venezuelan socialist government led by armed forces backed Nickolas Maduro had removed about eight tons of gold from its Central bank’s vaults last week, as the country had been exploring the options of selling its gold reserves following US sanctions on its heavy crudes, a Venezuelan lawmaker alongside a government spokesman said on Tuesday, the 9th of April 2019.
Before the sanction, Venezuela used to export 5,62,000 barrels of heavy crude in to United States per day. Since Venezuelan opposition leader Juan Guaido had proclaimed himself as the interim president of the crisis-sickened country following a questionable re-election of Maduro last year, United States alongside its European allies had grouped up to incline sanction on Venezuelan crude.
As an aftermath, Venezuela has now been barred to perform oil trade in both US Dollar and Euro, leaving its dominant source of earning dried out. Besides, it had not been able to perform oil trade with its Chinese and Russian allies for hard cash, as Venezuelan heavy crude would be accounted for oil-for-debt payment for both China and Russia.
In the wake of a grievous lack of hard currency, revenues had been chocked off significantly and Maduro’s government had been barely able to feed its people. Besides, there had been country-wide power outage and lack of critical supplies such as medicines.
In order to purchase critical supplies for its people, Maduro may have no other options left except selling its gold reserve. However, its gold-reserve had fallen by 30 tons this year and if it continues to fall at this pace, Maduro’s central bank vault currenting containing about 100 tons of gold, worth of $4 billion, would not last until the end of the year.