Venezuela's reserves down USD 2.36 billion so far this year
More US dollars are needed to speed up imports
Reserves are mainly comprised by gold. Therefore, there is much less cash available for duly authorized companies to buy US dollars to pay for imports.
In its latest report, think tank Síntesis Financiera said that Venezuela's liquid or cash reserves amount to USD 4.30 billion.
Although Venezuelan authorities will thoroughly review authorizations to buy US dollars in an attempt to avoid over-invoicing, available reserves are not enough to allow a proper flow of imports and, therefore, curb shortages of basic food products.
Under these circumstances, Venezuelan state-owned oil company Pdvsa or the National Development Fund (Fonden) need to sell larger sums of US dollars to the central bank in order to boost the country's international reserves.
It is worth noting that the Central Bank of Venezuela (BCV) is bound by law to transfer to Fonden, a fund administered by the Executive Office, any reserves exceeding the so-called optimum level: USD 26.80 billion.
Should this law continue in force, Venezuela's international liquid reserves will continue falling in the middle run.
Translated by Jhean Cabrera
A shipment of over 30,000 tons of phosphate arrived at Puerto Cabello port in late July on board the Shi Long Ling, a Chinese-flagged vessel that began its long journey in northern Africa. The cargo boat docked on July 26 after traveling more than 3,200 nautical miles. Undoubtedly, this would just be considered one in many cargo ships crisscrossing the oceans if it were not for the fact that Venezuela has denounced Western Sahara occupation by Morocco and yet purchases the territory's natural resource products from the occupying power.