We think Venezuela could become the next Panama as far as the currency is concerned. Over the last two weeks Venezuela’s currency [Boulivar] has mostly been stable…Venezuela is experiencing something we can only hope Iraq will experience in the near future…This is what happens when the US is for your currency revaluing or adjusting to a higher rate. First, the United States eased some sanctions allowing transactions with certain Venezuelan banks…At the same time the Venezuelan banking system has started reopening to more international activity which means banks can handle dollar payments and access money from oil sales more directly. All of this helps boost confidence…This causes global investors to take a second look at Venezuelan’s currency and perhaps invest. The key takeaway is US banks are allowing transactions with Venezuelan banks. We can only hope the US will allow transactions with the Iraqi dinar. Venezuela has more oil reserves than Iraq. Never forget this. In fact Venezuela has the largest oil reserves in the world… Sandy Ingram
