Posted by Francis Koh on 03 May 2015

Here is why Venezuela traded 1.4 million ounces of its gold reserves to Citi

Last week, local newspaper El Nacional reported (in Spanish) that President Nicolas Maduro's socialist government had signed a complex deal with Citibank — owned by Citigroup — to swap $1 billion in cash for about 1.4 million ounces of the country's gold reserves.

Here is why Venezuela traded 1.4 million ounces of its gold reserves to Citi  

While the details of the deal are unclear, El Nacional did say that Venezuela would have to pay interest on the funds.

On the flip side, the agreement should provide the cash strapped nation much needed foreign currency to afford some basic items it is currently lacking of, such as medicine, food and even toilet paper, just to mention a few.

Read More: http://www.mining.com/here-is-why-venezuela-traded-1-4-million-ounces-of-its-gold-reserves-to-citi/