Venezuela's Central Bank Confirms it Deposited $20 Billion in Swiss Bank

Caracas, Venezuela, October 5, 2005 - Following initial denials about that Venezuela had actually transferred its foreign currency reserves, Venezuela's Central Bank director confirmed that several months ago the Bank transferred $20 billion of its slightly over $30 billion in foreign currency reserves from the U.S. to Basilea, the Bank for International Settlements in Switzerland. Initially Central Bank (BCV) director Domingo Maza Zavala denied that the BCV made such a transfer, as President Chavez had claimed while he was in Brazil last week.

Maza Zavala corrected his initial statement, saying that indeed the BCV withdrew up to $20 billion from U.S. treasury certificates of deposit and placed them in the Swiss bank because, "the U.S. Dollar has been depreciating relative to the Euro - it was thus considered convenient..." 60% of Venezuela's foreign reserves are now placed in Euros and 40% in U.S. dollars, according to Maza Zavala.