Venezuela Closes In on $4 Billion Gold Reserve Transfer Deal

Venezuela is nearing a deal to transfer $4 billion in gold reserves from the Bank of England to the Federal Reserve Bank of New York, according to reports.

The agreement, which was reached in August by acting president Delcy Rodriguez and opposition leaders, would grant Venezuela legal control over 31 tonnes of precious metal locked away in London's underground vaults.

However, it appears that the Interim President would not have direct access to the bullion, with reports suggesting it will be supervised and restricted. This move could potentially allow the reserve to be used as collateral for government borrowings, including for reconstruction efforts following the recent devastating earthquakes in Venezuela.

The dispute over the gold reserves has been ongoing since 2018, when Britain refused to recognize Nicolas Maduro as the legitimate president of Venezuela, citing concerns over election rigging. The bullion has since been at the centre of a prolonged legal battle in UK courts.