Venezuela Ships More Gold to Switzerland in June

It’s official: We are geeks.

We realize we must be some of the few nerds in the world to anticipate with strong coffee and glee the 2:00 am New York time (8:00 am Zurich time) release of the monthly import statistics from the Swiss Federal Customs Administration so that we can cross-reference them with Venezuela Central Bank stats.

Venz Gold to Switzerland Sept 2015 to June 2016

This morning’s Swiss results show that Venezuela shipped $200 million dollars in gold to Switzerland during June.  As we have previously explained, Venezuela and PDVSA have a light interest payment schedule in June and July, with just $80 million due in June and $70 million due in July.

As a result, Central Bank of Venezuela (BCV) head Nelson Merentes made a Gandalfian effort to prevent Venezuela’s International Reserves from passing below $12 billion in June (and the close of the first half of 2016).  As the chart above indicates – the BCV did not sell any gold in May, although Venezuela sold $2.9 billion in the first half of the year and has sold $3.7 billion of their gold reserves since September 2015.

No sooner had the books been closed on the first half of 2016 than Venezuela’s Reserves crashed through that $12 billion line, however.

Venz BCV Reserves 19 July 2016 crop

From the almost $30 billion that the country had when Maduro began running the country in 2013, the country has just $11.826 billion left {To put that in perspective, if Venezuela decided to liquidate and just pay out all the reserves in the BCV equally to its 30 million citizens, each would get less than $400 per person.  In neighboring Colombia – which had to open a humanitarian corridor to feed, clothe and medicate 123,000 Venezuelans this past weekend – Bogota’s $47 billion in reserves would net out at $1,022 per head; Brazil, $1710 per capita; Mexico, $1413 per head.

But Venezuela – with the world’s largest oil reserves — should be more in the proximity of fellow OPEC nations like Algeria ($3,611 per head) or even Saudi Arabia ($18,187.50 per head)}.

At any rate, Venezuela’s reserves will continue down in August as it, PDVSA and Citgo must pay $725 million in interest (You can use our debt calendar here: https://www.scribd.com/doc/286044491/Latinvest-Venezuela-Report-Bond-Debts-20-October-2015 ).

Following that, September requires interest payments of a comparatively modest $310 million, but October comes in at $1.782 billion and November requires $2.946 billion, so more gold sales are coming – if Venezuela and PDVSA are going to pay.

 

Leave a Reply

Your email address will not be published.