Venezuela: Over $42 Billion in Foreign Reserves

Venezuela's foreign reserves reached $42.96 billion on Tuesday, $85 million below the figure registered on December 31 last year, the Venezuelan Central Bank (BCV) said.

Of the total, $42.14 billion are in the hands of the BCV and $828 million in the Macroeconomic Stabilization Fund, established to avoid changes in the national fiscal, foreign exchange and monetary balance because of fluctuations in oil revenue. The current level nearly trebles foreign reserves of late 1998, when President Hugo Chavez won the elections, estimated at $14.84 billion on December 31.

Venezuela's foreign reserves grow from the difference between the market price of the oil basket and that set in the budget of the nation, which is the world's fifth largest oil exporting country.

Venezuelan authorities rely on these reserves to face the world financial crisis. They are described as the country's economic strength, expressed in the growth of the Gross Domestic Product during twenty consecutive quarters and other financial cooperation mechanisms.