Venezuela’s $4 Billion Reserves Boost Wins Investor Approval

Investors in Venezuelan bonds are welcoming steps by President Nicolas Maduro to bolster transparency in government accounts after concern mounted that the country is running out of cash to service its debt.

Venezuelan notes posted the biggest rally in three weeks yesterday after Maduro ordered that $4 billion from Chinese loans be added to foreign reserves, which had dwindled to an 11-year low. At $21.4 billion, including gold assets, the central bank’s holdings only cover about 60 percent of debt due by the end of 2017. Venezuela’s borrowing costs are the highest in emerging markets at 20.44 percent.