Experts say inflation in Venezuela could soar to 720% in 2016. However, under the current circumstances in the country, it could rise even more. In a move to improve economic instability, Venezuela’s government plans to sell all of its gold reserves worth $12 billion. The country’s central bank has started negotiations with Deutsche Bank to carry out gold swaps. This year Venezuela has to make debt payments that are impossible without selling gold reserves. According to experts, there is a 78% probability of default next year. Around $10 billion of Venezuela’s foreign reserves are held in gold bars, thus preventing the government from selling the assets quickly. Gold swaps will allow the central bank to get cash from the financial institution in exchange for lending gold. Venezuela in recent years had been carrying out gold swaps with the Bank for International Settlements (BIS). BIS halted these operations last year, as a result of rising concerns about associated risks. At the moment, more than 60% of Venezuela's international reserves are in gold and the value of its monetary gold has decreased by $3.5 billion to $10.9 billion annually.