Venezuelan President Nicolás Maduro is preparing to sell a large portion of his country’s gold reserves for cash in a desperate attempt to keep his failing regime solvent, according to a report.
Fifteen tons of high-quality gold were to be sold to the United Arab Emirates in coming days in return for euros as part of a deal to sell a total of 29 tons to the UAE, a senior official in Caracas told Reuters.
This year’s sale of gold reserves that back the bolivar currency began with a shipment on Jan. 26 of 3 tons and follows the export last year of $900 million of mostly unrefined gold to Turkey, said the official, who requested anonymity.
Venezuela had reserves of 132 tons between the central bank’s vaults and the Bank of England at the end of November, according to central bank data.
The hard-left dictator resorted to selling off gold after falling oil production, the country’s wider economic collapse and mounting US sanctions hit public income and made it difficult for the country to access credit.
Washington, which is backing an attempt by the opposition to force Maduro to step down and call new elections, warned bankers and traders this week not to deal in Venezuelan gold.
Neither the embassy of the UAE in Colombia, which covers Venezuela, nor the central bank responded immediately to requests from Reuters for comment.
Meanwhile, opposition leader Juan Guaidó said he would defy a government ban on humanitarian aid by sending large convoys of medicine into Venezuela with the assistance of neighboring nations.
He said the move will be a “new test” for Venezuela’s military, whose top brass has sided with Maduro since protests against his rule broke out.
Guaidó said the life-saving medicine will be transported by vehicles arriving at several border points, after it is shipped into “friendly ports” in neighboring countries, according to the Telegraph.
“We are not just taking aid from the United States,” Guaidó said. “But in the next few days we will announce a global coalition to send aid to Venezuela.”
On Friday, Guaidó, 35, also made overtures to his rival’s allies Russia and China.
The self-declared interim president told Reuters he had sent messages to both powers, which are Venezuela’s top foreign creditors and support Maduro in the UN Security Council despite worries about the cash-strapped country’s ability to pay.
Guaidó argued that the two countries’ interests would be best served by switching the side they back in Venezuela, an OPEC member that has the world’s largest oil reserves but is in dire financial straits.
“What most suits Russia and China is the country’s stability and a change of government,” Guaidó said. “Maduro does not protect Venezuela, he doesn’t protect anyone’s investments, and he is not a good deal for those countries.”
Asked if China had been in touch with Guaidó, Foreign Ministry spokesman Geng Shuang said they were “maintaining close communication with all parties through various means regarding the situation in Venezuela.”
On Monday, the US imposed sweeping sanctions on Venezuela’s state-owned oil firm, aimed at pressuring Maduro to step down.