Venezuela: Gold Returns to the Country, The Euphoria in the Streets

The first gold bullion cargo arrived to Caracas on Friday, greeted by crowds of exuberance. For Venezuela, at the behest of President Hugo Chavez has come back from the western banks of gold worth over 11 billion dollars.

Passage of the convoy drives the bars from the airport to the central bank in Caracas, escorted by soldiers and armored cars, crowds greeted with national flags.



Experts warned that the entire gold reserves the withdrawal of foreign banks - more than 160 tons of gold bars, worth over 11 billion dollars - can be risky, slow and costly.

The first gold bullion cargo arrived to Caracas on Friday, greeted by crowds of exuberance. For Venezuela, at the behest of President Hugo Chavez has come back from the western banks of gold worth over 11 billion dollars.

Passage of the convoy drives the bars from the airport to the central bank in Caracas, escorted by soldiers and armored cars, crowds greeted with national flags.

Experts warned that the entire gold reserves the withdrawal of foreign banks - more than 160 tons of gold bars, worth over 11 billion dollars - can be risky, slow and costly.

At the head of the convoy drove the Venezuelan central bank president Nelson Merente. Did not disclose how much gold returned to the country on Friday, said only that it is a gold withdrawn from several countries in Europe.

Convoy was accompanied by the sound of sirens and drums, and crowds were visible plaques with inscriptions such as "Gold returns with Chavez!" and "Long live our sovereignty."

Chavez announced the repatriation of gold in August as a "sovereign" step that will help protect the foreign reserves of Venezuela before the economic turmoil in the U.S. and Europe. Most of the Venezuelan gold held abroad is located in London.

As he learned Reuter, all bars have to go back to the end of this year, and the entire cost of the operation will not exceed nine million dollars.

Chavez often accuses former presidents of Venezuela's sale of assets, and keeping most of the gold reserves in Western banks.

But, as Reuters writes, does not seem to bring gold back to the country could have some economic consequences for Venezuela, whose finances depend more on oil prices.

Next year, Chavez's fierce battle awaits election, and some critics suggest that the president took care to Venezuela's foreign reserves are not frozen as a result of sanctions, as happened to the assets of the former dictator of Libya, Colonel. Muammar Gaddafi.

Pulling the country's gold reserves, Chavez also reduces the risk of confiscation of Venezuelan assets in arbitration matters, including related to the nationalization of large oil projects run by U.S. companies.

More than 60 percent of international reserves, Venezuela is in gold. It is eight times more than the average for the region, amounting to 8 percent and more than twice as Ecuador is located on the second-largest reserves in Latin America.