Venezuela Closes In on Deal to Move $4 Billion Gold Reserve from Bank of England

Venezuela is close to finalizing a deal that would transfer $4 billion in gold from the Bank of England to the Federal Reserve Bank of New York, ending an eight-year legal dispute. The move comes after acting President Delcy Rodriguez reached a rare consensus with the opposition in August to recover 31 tonnes of gold locked away in London's underground vaults.

Under the agreement, Venezuela would gain control over the bullion, but it would be restricted and supervised, meaning that it couldn't be sold immediately. The reserve could be used as collateral for government borrowings, including for reconstruction efforts after a devastating earthquake in June that killed over 6,000 people.

The UK Foreign Office said the British government is not involved in determining who should have control of the gold and has maintained its position of support for a democratic transition of power in Venezuela. The deal comes as Donald Trump plans to meet with Rodriguez as early as next week, although it's unclear if the gold transfer will be discussed.

The World Bank estimated that the damage from the earthquake amounts to $19.6 billion, and the US has been involved in a prolonged legal battle over the gold, which was blocked by Britain due to its refusal to recognize Nicolas Maduro as the legitimate president of Venezuela after the 2018 elections were disputed.