Venezuelan U.S. Dollar Reserves Close 2008 at Record $42.2 Bln

[Judi Lynn]

Venezuelan U.S. Dollar Reserves Close 2008 at Record $42.2 Bln
By Daniel Cancel

Jan. 3 (Bloomberg) -- Venezuela’s U.S. dollar reserves closed 2008 at a record of $42.2 billion after climbing $5.1 billion during the last two days of the year, according to data on Central Bank of Venezuela’s Web site.

The increase comes as Venezuela prepares to confront a drop in oil revenue this year by covering public expenditure with reserves and off-budget development funds.

Venezuela’s 2009 budget calls for spending of $78 billion with an average price for oil of $60 a barrel. The South American country depends on crude oil sales for half of its public spending and 93 percent of its export revenue. The price for Venezuelan crude has plummeted 75 percent since a record high in July.

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The OPEC-member nation separately holds $39 billion in a National Development Fund, known as Fonden, to cover this year’s spending plans. Of the total, $9.6 billion is available for new projects as the rest is allocated, Venezuela President Hugo Chavez said Dec. 15. The central bank also has $828 million in an economic stabilization fund.

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