Venezuela Nears Potential $4 Billion Gold Transfer Deal to New York Fed
Venezuela and opposition leaders are reportedly nearing a deal to move $4 billion in gold reserves from the Bank of England to the New York Federal Reserve.
POLICY WIRE — London, UK — The Venezuelan government and opposition factions are reportedly nearing a breakthrough agreement to relocate approximately $4 billion in central bank gold reserves from the Bank of England to the Federal Reserve Bank of New York.
While the report, which cites four individuals familiar with the negotiations, has not been independently verified, it suggests that the interim government led by Delcy Rodriguez would secure legal control over the assets. Under the proposed terms, the gold could not be sold immediately but might serve as collateral for government borrowing, potentially funding reconstruction efforts following the twin earthquakes that struck in June.
The Bank of England has held roughly 31 metric tons of Venezuelan bullion for several years, refusing to release the assets due to the UK’s non-recognition of the legitimacy of the government under former President Nicolas Maduro. This stance originated in early 2019 when the British government joined numerous nations in supporting opposition leader Juan Guaido, citing concerns over the integrity of the previous year’s election.
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A spokesperson for the British foreign office stated that the government is not a party to the ongoing legal proceedings regarding the gold’s ownership, emphasizing that the Bank of England and the UK courts operate independently. The Bank of England confirmed it cannot take action until it receives further instructions from the UK court regarding which party holds legal authority over the account.
Last month, National Assembly chief Jorge Rodriguez indicated that the country was actively seeking to recover the reserves to help combat rampant inflation. Despite these efforts and requests made by acting President Delcy Rodriguez to King Charles, the bullion has remained the subject of a protracted legal battle in British courts.
The British foreign office reiterated that the UK continues to support a democratic transition of power in Venezuela that aligns with the will of the Venezuelan people. Representatives for the Federal Reserve Bank of New York, as well as the Venezuelan government and opposition, could not be reached for comment outside of standard business hours.
Reporting by Policy-Wire (PW)
