How does Venezuela fund essential imports with its gold?

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Venezuela's Strategy for Funding Essential Imports Through Gold Sales

Venezuela primarily funds essential imports by purchasing gold from its own artisan miners using the country's devalued bank notes. The miners, in turn, provide the government with the gold, which is then processed and sold internationally, most notably to Turkey. The proceeds from these gold sales are subsequently used to acquire much-needed import goods such as food and hygiene products.
Government Incentives for Miners

To ensure a steady supply of gold and prevent smuggling, the Venezuelan government offers a premium price for the metal above international market rates. This incentive is crucial for miners, who exchange their gold for hard currency. The miners receive payment in the form of the nation's nearly worthless bank notes from the government, which they then use to acquire gold.
The Gold Processing and Export Chain

Once acquired from the miners, the gold is smelted and stored within the vaults of Venezuela's central bank. From there, it is prepared for international sale. This processed gold represents a significant, albeit unconventional, asset for the government in its efforts to navigate severe economic sanctions and a crippled oil industry.
Key Trading Partner and Import Sourcing

Turkey has emerged as a principal buyer of Venezuela's gold. A portion of the revenue generated from these sales to Turkish refineries is then used by Venezuela to purchase essential consumer goods, such as pasta and powdered milk, from Turkey. These Turkish products are subsequently integrated into Venezuela's subsidized food programs, highlighting a symbiotic trade relationship driven by Venezuela's economic distress.

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How does Venezuela fund essential imports with its gold?

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