As Venezuela increased its Reserves held by the Central Bank by $1.8 billion in what Latinvest’s Russ Dallen called “the annual end of the year window-dressing”, Dallen also pointed out that Venezuela’s gold reserves had actually fallen below $11 billion in November.
More importantly, says Dallen, the Central Bank quietly released the reserve breakdowns from November, which show that Venezuela’s gold holdings actually fell below $11 billion.
“The reserve figures from November show that Venezuela’s gold holdings fell $120 million to $10.976 billion,” Dallen wrote in a report to Latinvest clients. “That means that Venezuela’s gold holdings have now fallen over $3.5 billion in 2015.”
Venezuela’s reserves had fallen to a 12 year low of $14.583 billion on December 11, the lowest they have been since 2003, notes Dallen.
“In 9 months Venezuela’s reserves fell almost $10 billion from their March high of $24.257 billion,” Dallen said. “And with Venezuela’s mix of heavy oil now fetching under $30 a barrel, with almost $11 billion in foreign debt service next year, inflation over 200%, shortages everywhere, and the country’s institutions set for high intensity political combat, the country is on track for both a financial and civic breakdown.”