“The world’s financial system, based on the dollar, has entered into a crisis of uncertainty and we are planning to construct a new international monetary system, and especially in South America, protect ourselves from this situation,”Venezuelan Foreign Minister Nicolas Maduro speaking on Venezuela’s dependence on the dollar and it’s recent downgrade.
In a stealth move, Venezuela is planning to transfer billions of dollars from banks in Switzerland and Barclays Bank in England to China and Russia. The Bank of England recently received a request from the Venezuelan government regarding transferring 99 tons of gold Venezuela holds in the bank back to Venezuela, said a person familiar with the matter who requested to remain unnamed. A spokesman for the Bank for International Settlements in Switzerland where Venezuela keeps $3.7 billion of its cash reserves, and 11.2 tons of gold that Venezuela values at $544 million confirmed the request.
Analysts say the move mades little economic or financial sense, since Venezuela would be taking its money out of secure banks in safe countries and putting it in countries that are at risk. Two reasons thought for the monetary move, is that China has asked for collateral for billions of dollars it has loaned Venezuela. The other possible reason is to move the money away from the grasp of foreign countries who have filed claims with the Chavez government when their companies were nationalized.