UAE confirms purchase of 3 tons of gold from Venezuela
Noor Capital's transaction comes as the Maduro administration appears to be increasing gold sales to the UAE to ease its woes.
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Venezuelan President Nicolas Maduro holds up a gold bar during a visit to Puerto Ordaz city in December 2017. Photo:Reuters. |
Abu Dhabi-based investment firm Noor Capital, United Arab Emirates (UAE), confirmed yesterday that it bought 3 tons of gold from the Central Bank of Venezuela on January 21,Reutersreport
However, Noor Capital said it would refrain from trading until the situation in Venezuela stabilizes, stressing that its business was "in accordance with international standards and laws" at the time of purchase.
Earlier, Reuters reported that Venezuela shipped 3 tons of gold to the UAE on January 26 and will sell another 15 tons to the country in the coming days. A source from a senior official revealed that Venezuela's plan is to sell 29 tons of gold stored in the capital Caracas to the UAE in February to finance the import of essential goods.
Three other sources, speaking on condition of anonymity, said two senior officials at Venezuela’s central bank were forced to resign because they did not want to authorize the sale of gold. The bank did not immediately respond to a request for comment.
The situation in Venezuela has become increasingly tense after National Assembly President Juan Guaido declared himself "interim president" in a bid to oust President Nicolas Maduro. Washington has shown strong support for Guaido by transferring Maduro's government assets in the US to the opposition leader, while warning bankers and businessmen not to trade gold with Venezuela.
The Maduro government began selling gold about a year ago, after falling oil production, soaring inflation and US sanctions sent the economy into a tailspin. Venezuela had 132 tonnes of gold reserves at the central bank and the Bank of England as of the end of November 2018, according to Central Bank data.