Venezuela Eyes $4 Billion Gold Transfer from Bank of England

The Venezuelan government and opposition are close to reaching an agreement to transfer the country's $4 billion gold reserve from the Bank of England to the Federal Reserve Bank of New York. According to the Financial Times, four people familiar with the discussions confirmed this development. This move would give interim President Delcy Rodriguez legal control over the gold, but it could not be sold immediately.

The gold reserve would instead serve as collateral for government borrowings, including reconstruction efforts following June's twin earthquakes. The UK Foreign Office spokesperson stated that they are 'not a party in the legal case' to determine who should have control of the Venezuelan gold held in the Bank of England. The Bank of England has withheld about 31 metric tons of Venezuelan gold since early 2019 due to non-recognition of President Maduro's legitimacy.

Last month, Venezuela's National Assembly chief Jorge Rodriguez said the country was working on recovering its gold reserves to counter surging inflation. The UK maintains its position in supporting a democratic transition of power in Venezuela.