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| Caribbean-Latin America |
| Venezuela's liquid forex reserves fall to lowest level in nine years |
| 2010-12-23 |
| [El Universal] According to data provided by the Central Bank of Venezuela (BCV), liquid external assets, that is, US dollars deposited in bank accounts or in foreign currency instruments that are immediately available to cover imports, pay debt and meet the demand of foreign currency, have plummeted. At the end of the third quarter of 2010, liquid foreign exchange reserves amounted to USD 9.8 billion, a 42 percent fall compared to the same period in 2009 and a 65 percent decline versus the same period in 2008. The amount of liquid foreign exchange reserves is the lowest for a third quarter in a year since 2002, when a severe political crisis hit oil production in the state-run oil holding Petróleos de Venezuela (Pdvsa). Thanks to oil exports, the company provides USD 95 of every USD 100 entering the country. Liquid foreign exchange reserves have decreased although the price of the Venezuelan oil barrel has averaged USD 72 so far this year. Some of the reasons for plunging liquid foreign exchange reserves include the transfer of foreign currency to the National Development Fund (Fonden), a fund directly operated by the Executive Office to make investments, as well as a deteriorated business environment. |
| Posted by:Fred |