Venezuelan international reserves grow 1.47%


Caracas, Aug 11. To past Friday (August 7), Venezuela’s International Reserves were at 31.28 billion dollars, which represents a growth of 1.47 percent. The reserves grew 454 million dollars compared with July 7, according to the last report of the Venezuelan Central Bank (BCV, Spanish abbreviation).

Breaking-down the total, there are 30.45 billion in the BCV and 829 million in the Macroeconomic Stabilization Fund (FEM, Spanish abbreviation), whose purpose is to ensure that fluctuations in oil income do not affect the fiscal, exchange and monetary balance of the country.

The Macroeconomic Stabilization Fund, formerly known as Fund for Investment of Macroeconomic Stabilization (FIEM), receives revenues above a reference price that is based on the average oil price of the last five years, after a revision between the BCV and the Venezuelan state-run oil company Petroleos de Venezuela (PDVSA). Oil revenues above the reference price are transferred to the fund.

Having a good level on the reserves benefits the country, because it gives confidence to foreign investors and improves country’s risk rating.

The incomes coming from high oil prices have sustained, significantly, Venezuelan international reserves, because the country is one of the world’s main oil exporter.

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