Venezuela Close to Unfreezing $4 Billion in Gold Trapped in London

The Venezuelan government and an opposition faction are close to reaching a deal that would transfer approximately $4 billion in gold from the Bank of England to the Federal Reserve Bank of New York. The proposed agreement aims to end a seven-year dispute over the country's central bank gold reserves, which have been frozen at the Bank of England since 2019.

The dispute began when Britain and several other Western countries recognized opposition leader Juan Guaidó as Venezuela's interim president instead of Nicolás Maduro, leading the Bank of England to reject a request from Venezuela's central bank to return the gold. The matter has been ongoing in British courts, with the bullion remaining frozen throughout the proceedings.

Under the new arrangement, the Venezuelan government would gain legal control over the gold, but would not be allowed to sell it or dispose of it directly. Instead, the gold could be used as collateral for loans to finance public spending and reconstruction projects in Venezuela, particularly following the two earthquakes that struck the country in June.

The proposed deal is part of broader US-backed negotiations aimed at restructuring Venezuela's political and economic system, including debt restructuring and oil agreements. The transfer of the gold would also be subject to US oversight, with the bullion potentially being placed under the management of the US Treasury or transferred to the vaults of the Federal Reserve Bank of New York.