As of Monday, Venezuela’s international reserves had reached US $29.992, a growth of 2.56%, equivalent to US $750 million since May 22, when it reached US $29.242 billion, reported the Central Bank of Venezuela (BCV).
Of the total, US $29.163 are found in the guaranteeing entity and the other US $829 million are in the Macroeconomic Stabilization Fund (FEM) created in 1998 with the aim that the fluctuations of oil revenues would not affect fiscal equilibrium, exchange rate, and the national monetary system.
The difference between Venezuelan price per barrel and the sales goals reached were established in the national budget that feeds the FEM, previously the Investment Fund for Macroeconomic Stabilization (FIEM)
Quarterly, the BCV and Petróleos de Venezuela (PDVSA) review the price of oil and if it is equal or greater than in the last five years, the resources are deposited in the above mentioned fund.
The national government constantly reviews all the imports that arrive through the Agreement of Reciprocal Payments and Credits of the Latin American Integration Association (ALADI), with the goal of being stricter in the allocation of currency.
The optimization of the levels of reserves of the country generates confidence in foreign investment and improves the qualifications of the country globally.
The revenues derived from the high price of oil have sustained, by and large, the international reserves of Venezuela, one of the global exporters of crude.
In theoretical terms, the international reserves, with the funds represented by coins, money, or similar items, are saved as precaution for necessities and eventualities or legal and contractual reasons, they are formed by the external assets (quantity of gold and currency) that are possessed by a country to make good on their international promises, that are under the control of the Central Bank of Venezuela.
Bolivarian News Agency, Press Unit of the Embassy of the Bolivarian Republic of Venezuela to the United States / June 25, 2009