Citigroup stock climbs after Venezuelan account closures
Nicolas Maduro said that Citibank planned to close foreign currency accounts within a month
Updated : 15:19
Stock of Citigroup rose in premarket trading on Tuesday after the company announced it would be withdrawing foreign accounts in the South American region of Venezuela.
Shares gained 1.4% to $42.88 folowing the news.
President of Venezuela Nicolas Madiro confirmed the news that Citibank, part of Citigroup, are planning to close foreign currency accounts in the country by the end of the month.
As reported by Reuters, Maduro said the move was part of a "blockade" against the country.
The Venezuelan government relies on Citibank for foreign currency transactions because of strict currency controls put in place since 2003, Reuters noted.
The firm said the action “is not a reflection of our commitment” to the country, and that it will continue discussions with the administration of Venezuela.
“We value our dialogue with the president’s administration and hope to address its concerns in the interest of continuing to serve our clients,” Citigroup said in a statement.