Venezuela Inches Closer to Transferring $4 Billion Gold Reserve

The Venezuelan government and opposition are nearing an agreement to transfer $4 billion in gold reserves from the Bank of England to the Federal Reserve Bank of New York.

According to the Financial Times, the deal would allow the interim government of Delcy Rodriguez to gain legal control over the gold, but would prevent them from selling it immediately. Instead, the reserve could be used as collateral for government borrowings, including reconstruction efforts after last June's twin earthquake.

The transfer is a significant step in resolving a long-standing dispute between Venezuela and the Bank of England, which has withheld 31 metric tons of gold since early 2019 due to concerns over Maduro's legitimacy. The British government joined dozens of nations in recognizing Juan Guaido as the rightful leader, leading to the current stalemate.