Venezuela Eyes $4 Billion Gold Transfer as Collateral for Loans

Venezuela is closing in on a landmark deal to transfer its $4 billion gold reserves from London to New York, according to the Financial Times.

The plan involves transferring the gold from the Bank of England in London directly to the Federal Reserve Bank of New York. Acting President Delcy Rodríguez would gain legal control of the gold, but her administration cannot sell it immediately.

The gold is being used as collateral for fresh loans to help rebuild after twin earthquakes devastated Venezuela in June. The plan requires approval from British judges, and the Bank of England has stated that it cannot move the gold without a court order.