Of course the downside to this for producers is that the central bank would have to pay the current world price with local currency, but at the official exchange rate, not the "unofficial" black market rate. That would mean that, in effect, the miners would be getting only a 1/3 of the current world gold price.

It is obvious that with this deal, the small miners will be smuggling even more gold out of the country and Venezuela will see even less gold internally unless they bring the exchange rate more into line with reality.