Venezuela's central bank sold nearly 6 tons of gold in the second half of last year as the country faced severe dollar shortages due to U.S. restrictions on oil exports.
The sales were disclosed in financial statements published on the central bank's official website. According to estimates by Caracas-based consulting firm Sintesis Financiera, these transactions were primarily completed in December.
The Trump administration intensified restrictions on Venezuelan oil exports last year and seized the first oil tanker on December 10. The embargo cut off dollar inflows to the Latin American country, widening the gap between the official and parallel exchange rates to historic highs and raising concerns about a return of hyperinflation.
However, after U.S. special forces removed President Nicolas Maduro in January, the United States has allowed some proceeds from Venezuelan oil sales to gradually return to the country. This change revitalized the official foreign exchange market and narrowed the gap with the parallel rate.
According to a report released by Sintesis Financiera on Monday, the central bank appears not to have sold any gold in January based on its financial statements.
Despite the gold sales, Venezuela's total foreign reserves still increased by 30% in dollar terms last year, mainly due to a significant rise in precious metal prices. The impact of price increases was reflected more quickly in reserve data because authorities shortened the time frame used to calculate average metal prices.
"This creates a perception of strengthened capacity, which is why we see such a notable rebound in total foreign reserves," said Tamara Herrera, director of Sintesis Financiera.
Central bank reserves are one of the few datasets that Venezuelan authorities still regularly publish. Key indicators such as consumer price indexes haven't been released for years, while economic growth data is sporadic and incomplete. According to data compiled by Sintesis Financiera, Venezuela's gold reserves have declined by more than 80% over the past 12 years as the country under Maduro's rule dealt with an unprecedented economic crisis.
A significant portion of Venezuela's current gold reserves is held at the Bank of England. However, Venezuela cannot access these funds because Britain hasn't recognized its government since 2019. This situation remains unchanged following Maduro's removal by U.S. forces.
"The external sector is in complete disarray," said Jose Manuel Puente, a Venezuelan economist and associate professor at IE University in Madrid. "Without financial assistance, it's fundamentally impossible to stabilize the foreign exchange market."
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