Authorities in Caracas intend to transfer billions of dollars and gold reserves they hold in European banks to countries like Russia, China and Brazil, writes Wall Street Journal (WSJ).
Venezuelan leader Hugo Chavez plans are to transfer reserves of 6.3 billion dollars cash, which it’s held in a bank in Basel, Switzerland, and Barclays Bank in London to banks in Russia, China and Brazil, whose names were not disclosed.
Venezuela has also 211 tons of gold and other goods worth 11 billion dollars, which Caracas leader wants to bring into the country, at the central bank, where the government has 154 tons of raw gold, it said in a document presented by the Wall Street Journal.
Venezuelan officials are highly secretive about these transfers, the finance minister saying that he makes no comment and that he is not authorized to talk about it.
Previously, however, officials in Caracas criticized Venezuela’s dependency for the U.S. dollar. Foreign Minister Nicolas Maduro said that the world financial system that is based on the dollar “has entered into a crisis of uncertainty”. “We plan to build a new international monetary system, especially in South America, to protect us in this situation”, he said.
The Bank of England recently received a request from the Venezuelan government regarding the transfer of 99 tons of gold that Caracas keeps in the bank, said an inside source.
Both representatives of the banks in England, and those from Switzerland, declined comment.
Analysts say, however, that these transfers do not make sense, given that Venezuela is moving money from banks from safe and strong countries to countries whose currency (ruble Russian or Chinese yuan) are not reserve currency.
“It’s a big risk”, said Jose Guerra, former chief of Venezuela’s central bank, adding that documents presented by WSJ are official.