Identifier
Created
Classification
Origin
09CARACAS538
2009-04-29 14:33:00
CONFIDENTIAL
Embassy Caracas
Cable title:
SPECULATION ABOUT ULTERIOR USG MOTIVES IN FREEZING
how-toVZCZCXRO2152 PP RUEHAO RUEHCD RUEHGA RUEHGD RUEHHA RUEHHO RUEHMC RUEHMT RUEHNG RUEHNL RUEHQU RUEHRD RUEHRG RUEHRS RUEHTM RUEHVC DE RUEHCV #0538 1191433 ZNY CCCCC ZZH P 291433Z APR 09 FM AMEMBASSY CARACAS TO RUEHC/SECSTATE WASHDC PRIORITY 2972 INFO RUEHWH/WESTERN HEMISPHERIC AFFAIRS DIPL POSTS RHEHNSC/NSC WASHDC RUMIAAA/HQ USSOUTHCOM MIAMI FL RUCPDOC/DEPT OF COMMERCE RUEATRS/DEPT OF TREASURY
C O N F I D E N T I A L CARACAS 000538
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR RKING
USDOC FOR 4332 MAC/ITA/WH/JLAO
E.O. 12958: DECL: 04/28/2019
TAGS: EFIN PREL VE
SUBJECT: SPECULATION ABOUT ULTERIOR USG MOTIVES IN FREEZING
OF BANK ACCOUNT
REF: CARACAS 406
Classified By: Economic Counselor Darnall Steuart for reasons 1.4 (b)
and (d).
C O N F I D E N T I A L CARACAS 000538
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR RKING
USDOC FOR 4332 MAC/ITA/WH/JLAO
E.O. 12958: DECL: 04/28/2019
TAGS: EFIN PREL VE
SUBJECT: SPECULATION ABOUT ULTERIOR USG MOTIVES IN FREEZING
OF BANK ACCOUNT
REF: CARACAS 406
Classified By: Economic Counselor Darnall Steuart for reasons 1.4 (b)
and (d).
1. (C) Businessman Andres Duarte (strictly protect) shared
with Econcouns and PetAtt speculation he had heard from
several associates that the recent freezing of a Bank of
America account (ref A) was part of a USG plan to "tighten
the financial noose" around the government of the Bolivarian
Republic of Venezuela (GBRV) as it struggles to deal with low
oil prices. (Note: This bank account was used by multiple
Venezuelan brokers active in the parallel foreign exchange
market. Most financial sector analysts believe that, in the
months prior to the account's closure, PDVSA sold hundreds of
millions of dollars into the parallel market through brokers
who used this bank account. It is rumored that up to USD 80
million of PDVSA's money was frozen, among other funds.
Since the freeze, which occurred on March 25, the parallel
rate has risen from 5.9 to 6.8 bolivars/USD, partly because
PDVSA apparently has not sold further dollars into the
market. End note.)
2. (C) Comment: Duarte himself does not believe the USG had
ulterior motives, beyond the announced money laundering
indictment, in the freezing of the Bank of America account,
nor have we heard such speculation firsthand ourselves.
Given the tenuous state of our relations with Venezuela,
however, we believe it worth reporting Duarte's comment, as
we would not be surprised if some GBRV officials interpreted
the freezing of the account as a part of an explicit USG plan
to target Venezuelan or GBRV financial networks. End comment.
CAULFIELD
SIPDIS
HQ SOUTHCOM ALSO FOR POLAD
TREASURY FOR RJARPE
NSC FOR RKING
USDOC FOR 4332 MAC/ITA/WH/JLAO
E.O. 12958: DECL: 04/28/2019
TAGS: EFIN PREL VE
SUBJECT: SPECULATION ABOUT ULTERIOR USG MOTIVES IN FREEZING
OF BANK ACCOUNT
REF: CARACAS 406
Classified By: Economic Counselor Darnall Steuart for reasons 1.4 (b)
and (d).
1. (C) Businessman Andres Duarte (strictly protect) shared
with Econcouns and PetAtt speculation he had heard from
several associates that the recent freezing of a Bank of
America account (ref A) was part of a USG plan to "tighten
the financial noose" around the government of the Bolivarian
Republic of Venezuela (GBRV) as it struggles to deal with low
oil prices. (Note: This bank account was used by multiple
Venezuelan brokers active in the parallel foreign exchange
market. Most financial sector analysts believe that, in the
months prior to the account's closure, PDVSA sold hundreds of
millions of dollars into the parallel market through brokers
who used this bank account. It is rumored that up to USD 80
million of PDVSA's money was frozen, among other funds.
Since the freeze, which occurred on March 25, the parallel
rate has risen from 5.9 to 6.8 bolivars/USD, partly because
PDVSA apparently has not sold further dollars into the
market. End note.)
2. (C) Comment: Duarte himself does not believe the USG had
ulterior motives, beyond the announced money laundering
indictment, in the freezing of the Bank of America account,
nor have we heard such speculation firsthand ourselves.
Given the tenuous state of our relations with Venezuela,
however, we believe it worth reporting Duarte's comment, as
we would not be surprised if some GBRV officials interpreted
the freezing of the account as a part of an explicit USG plan
to target Venezuelan or GBRV financial networks. End comment.
CAULFIELD