The first step in a planned move to repatriate virtually all Venezuela's foreign gold reserves was completed on Friday with the arrival in Venezuela of the first shipment of bullion. A total of 160 tonnes of ingots worth more than USD 11 billion is to be repatriated. However the timetable has not been disclosed for security reasons.

President Hugo Chavez addressed the nation on local television last week with the Council of Ministers, the Executive Cabinet and representatives of the Venezuelan Central Bank, including bank chief, Nelson Merentes. Speaking from the Miraflores presidential palace Chavez said the move was giving back the country's, “Body and soul,” and went on to say the return of the gold gave Venezuela more independence from what he described as imperialist powers. While brandishing a copy of the constitution he explained that the Central Bank would carry out the repatriation. Chavez said the Central Bank would now be independent of foreign powers and subject only to the national constitution. He finished his speech by saying, “We are going to work seriously to put the gold where it should have been in the first place, not in vaults of the Miraflores palace, nor in Chavez' pocket, but in the vaults of the Central Bank.”

Chavez faces presidential elections next year, where he will try for another six year term.

By Liam Lever