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Article: VENEZUELA WITHDRAWS MAJORITY OF FOREIGN CURRENCY RESERVE FUNDS FROM U.S. TREASURY.
- Article from:
- NotiSur - South American Political and Economic Affairs
- Article date:
- October 21, 2005
CopyrightCOPYRIGHT 2005 Latin American Data Base/Latin American Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The Venezuelan government took significant steps to fiscally delink its foreign-currency reserves from the US this month. During the first week of October, the Banco Central de Venezuela (BCV) announced that it pulled US$20 billion of its foreign-currency reserves out of US Treasury bonds, moving the funds to Europe. Opponents of the decision said it showed that the BCV had lost its autonomy from the executive branch and was a bad financial decision.
Most of Venezuela's reserves go from the dollar to the euro
Venezuela had moved its BCV foreign reserves out of US banks, liquidated its investments in US Treasury securities, and placed the funds in Europe, ...