Venezuela Sold 40 Tons Of Gold In The First Quarter of 2016

Venezuelan President Nicolas Maduro has shown his true colors this year and the people of Venezuela don’t like them. In a report from Latino Show Magazine, Maduro has cut government employee hours, closed shopping malls, rationed water and forced other unbearable edicts on the Venezuelan population in order to show his power not his ability to lead the country. Oil production has always been Venezuela ‘s saving grace and when the price of oil dropped, the country was thrown into a devastating debacle.

Venezuela is one of the top crude producers in the world and the demand for the country’s number one product has greatly diminished. According to an insider named Norka, Maduro sold $1.7 billion in gold reserves to pay some of the debts that keep piling up, and that has dropped Venezuela’s gold reserves to the lowest level ever.

Venezuela now has $12.1 billion in capital reserves and gold accounts for 70 percent of that number. According to an article published by Telegraph.co.uk, the International Monetary Fund thinks Venezuela’s economy will contract by 8 percent in 2016, and it will shrink by another 4.5 percent in 2017.

Maduro has been selling gold reserves since March 2015. Russia, China, and Switzerland started buying gold from Venezuela, and those countries continue to add more gold to their reserves thanks in part to Maduro’s governing ineptness.

The government-run oil company has more than $6 billion in debt interest payments due this year. The sale of gold reserves is being used to pay part of that debt.