Venezuela’s Crisis Drains its Foreign Reserves

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Venezuela’s foreign reserves have dropped below $10bn for the first time in 15 years as chronic mismanagement, corruption and subdued oil prices continue to batter what used to be the wealthiest country in South America, the Financial Times reported. The reserves stood at $9.983bn, according to figures published on Friday from the central bank, representing a 77 per cent decrease since January 2009 when they hit a peak of $43bn. The fall comes at a time of heightened political tension. On Sunday, Venezuelans will vote in a referendum on President Nicolás Maduro’s widely despised plan to create a “constituent assembly”. The vote has been organised by the opposition and is non-binding but will give some indication of Venezuelans’ views. They will be asked about the assembly, the role of the military and their thoughts on free elections. According to Datanalisis, the country’s most-respected pollster, 67 per cent of people oppose the assembly, which would have powers to dissolve Congress, re-write the constitution and change laws. Read more. (Subscription required.)