Washington: The International Monetary Fund (IMF) on Thursday said it is closely watching global energy markets amid tensions around Venezuela and Iran, but noted that oil prices have not yet seen “very significant impacts.”
Asked how serious the current tensions surrounding Venezuela and Iran could be for global energy markets, Julie Kozack, Director of the IMF’s Communications Department, said: “What I can say for now is that obviously we’re monitoring all of this closely.” She added: “We pay close attention to what happens in global energy markets and oil prices in particular.”
“Right now, there haven’t been very significant impacts on oil prices, but as I said, we’ll closely monitor, and we’ll look for signs of changes in those markets,” Kozack said at the IMF press briefing. The questions came as Kozack outlined the Fund’s assessment of the economic situation in Venezuela and the conditions under which the IMF could resume engagement with Caracas, given the recognition-related pause. “Since late 2024, our assessment is that imbalances and vulnerabilities have reemerged, driven by lower oil revenues, a widening fiscal deficit,” she said, adding that the situation has been shaped by “a scarcity of US dollar liquidity.”
She also said: “Inflation is estimated to be in the triple digits, and rapid currency depreciation is underway.” Responding to a question, she said Venezuela’s holdings of Special Drawing Rights (SDRs) at the Fund are “equivalent to about $4.9 billion.” The country would gain access only when the IMF resumes engagement, which remains paused due to government recognition issues, she noted.
“Since 2019, the IMF’s dealings with Venezuela have been paused due to government recognition issues,” said Kozack. (IANS)
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