The central bank of Venezuela has paid $172 million to the American bank Citigroup to recover the gold it had swapped with the bank. According to Reuters, "the precious metal was previously provided by the central bank as collateral for a dollar loan". Venezuela has used a part of its gold supply in recent years to take out dollar loans from foreign banks, but due to the new American sanctions, U.S. banks are no longer allowed to carry out these swaps. As a result, Venezuela had no other option than to end the currency swap with Citigroup and to return the gold. The reversal of this currency swap shows that Venezuela still managed to get enough dollars to repay the loan. “Citibank got paid,” said a local finance industry source familiar with the negotiation who asked not to be identified. “The policy is to recover the gold,” added a second source consulted. The country however is still in trouble, because the American sanctions made it almost imp...
from GoldBroker.com https://www.goldbroker.com/news/troubled-venezuela-recovers-gold-from-swap-with-citigroup-1334
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