Venezuela Nears Deal on $4B Gold Reserves at Bank of England

Venezuela is close to reaching an agreement over $4 billion in gold reserves held by the Bank of England, but a UK court must first determine which Venezuelan authority has legal control.

The proposed deal would place the reserves under the interim government led by acting President Delcy Rodríguez and potentially move them to the Federal Reserve Bank of New York. However, the arrangement still faces a major hurdle: a UK court must identify which Venezuelan authority is entitled to give instructions to the Bank of England.

The dispute began when rival boards of Venezuela's central bank sent conflicting instructions over the reserves held in London. The UK Supreme Court ruled in 2021 that British courts should apply the UK government's recognition position when assessing which Venezuelan authority can act.

A custody transfer may not involve physically moving the gold, as it often remains in place while the recorded owner changes. The Federal Reserve Bank of New York says its vault provides gold custody for central banks, governments, and official international organizations.