Venezuela's economy has been devastated by the drop in oil
prices which came on the back of years of financial mismanagement by the
quasi-socialist government of the Latin American nation. The next two months is
crunch time for Venezuela with more than $5 billion in maturing debt and
interest payments due before the end of the year. Venezuela's foreign exchange
reserves are at a 12-year low as hard currency becomes scarcer and shortages of
basic goods stirs up anger inside the country. While its reserves total
$15.35bn, less than $500 million are "liquid reserves" says a new
note by Barclays reported by the FT "with the remainder in gold and
borrowings from the IMF. All of which means Venezuela could find itself in a
$10bn hole this quarter." Venezuela has the world's 16th largest hoard of
gold. At 361 tonnes as of the start of October the bullion represents 67.3% of
the country's reserves. More…
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