IMF keeps Venezuela’s resources blocked
Venezuela's access to the resources it has in the International Monetary Fund (IMF) can not be used by Nicolás Maduro or Juan Guaidó until the organism makes a decision on the legitimate president of the nation
The main reason for the South American country cannot use the assets at the IMF is the members of the organization have not yet decided to recognize Maduro or Guaidó as legitimate president of the nation.
Nicolás Maduro has been using most of the Special Drawing Rights (SDR) of Venezuela since 2015. These money orders represent a kind of currency of the International Monetary Fund available without the need to establish any economic plan as it happens with the loan systems.
It is worth noting that the balance of Venezuela in SDR for March 31, 2019 is 30,023,903 in holdings and 254,802,355 in the reserve, which amounts to a reduction of more than 70% since 2013.
A source on the field said: “Since the IMF members are not clear on which government they recognize in Venezuela, the Fund cannot act upon an eventual request from the government of Maduro or Guaidó to remove the Venezuelan SDR.”
Additionally, the country’s relations with the IMF are almost nil since 2004, when in Venezuela the technicians of the multilateral organization visited the country for the last time.
L.Sáenz
Source: Banca & Negocios
