Just days after returning home from another round of chemotherapy in Cuba, Hugo Chavez has ordered billions of dollars in cash and hundreds of tons of gold to be relocated.According to The Wall Street Journal, Venezuela will move the cash from Swiss and English banks to Russia, China, and Brazil while moving hundred of tons of bullion from abroad into its own central bank vaults.
No official statement has been released, but following the U.S. debt ceiling crisis senior Venezuelan officials have been vocal about “a crisis of uncertainty” with their dollar based monetary system.
Banking officials call the move a big risk that could be prompted, in part, by litigation to recover damages from the nationalization of Venezuela’s oil fields — a bill that could range from $10 to $40 billion.
Documents released by Venezuala’s foreign minister also mention “the powers of the North” have “pillaged” Libya’s European held reserves and notes a plan should be made to avoid a similar fate.
This leads to further speculation about Chavez’s cancer, next year’s elections, and potentially drastic political manoeuvring that could incur international sanctions.
Following the announcement, three lines of credit for $4 billion were extended to Venezuala from China, Russia, and Brazil — with a portion of the Russian funds specifically slated for military use.
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