Venezuela Seeks $4 Billion Gold Transfer from London to New York
Venezuela is close to an agreement with the opposition to transfer $4 billion in gold reserves from the Bank of England to the Federal Reserve Bank of New York, according to a report by the Financial Times. The move would see Delcy Rodriguez's interim government gain legal control over the gold, but it could not be sold immediately.
The reserves could instead be used as collateral for government borrowing, including to fund reconstruction efforts following June's twin earthquakes. This proposal has been in the works since last month, when Venezuela's National Assembly chief Jorge Rodriguez announced that the country was working to recover its gold reserves held in the Bank of England's vaults.
The Bank of England had withheld about 31 metric tons of Venezuelan gold for years, citing its non-recognition of Nicolas Maduro's government. The bank's refusal to release the gold dates back to early 2019, when the British government joined dozens of countries in backing opposition leader Juan Guaido due to concerns over Maduro's election victory.