Loading ...Venezuela discussing gold swap with Wall Street banks: sources
(Reuters) – Venezuela’s central bank is in talks with Wall Street banks to create a gold swap that would allow it to monetize some $1.5 billion of the metal held as international reserves, according to government sources familiar with the operation.
The move would help the government of President Nicolas Maduro boost its hard currency position as the OPEC nation struggles with soaring consumer prices, chronic product shortages and a shrinking economy caused by low oil prices.
Under the swap, the central bank would provide 1.4 million troy ounces in exchange for cash, said a central bank source. After four years, it would have right of first refusal to buy the gold back, added the source, who asked not to be identified.
The ongoing talks involve at least two institutions, Bank of America and Credit Suisse, the source told Reuters.
The banks and Venezuela’s central bank did not immediately respond to requests for comment.
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“After four years, it would have right of first refusal to buy the gold back, added the source, who asked not to be identified.”
LOL what are they smoking!
more http://www.reuters.com/article/2015/03/10/us-venezuela-gold-idUSKBN0M62CO20150310