Venezuela Seeks Return of $4bn Gold Held by Bank of England

The Bank of England is under pressure to release $4bn worth of gold held in its vaults for Venezuela, as both the government and opposition have joined forces to demand its return.

The gold, valued at around $1.95bn in 2020 but now estimated to be over $4bn, has been frozen since 2019 due to a recognition dispute between the two sides.

However, with Nicolas Maduro's interim presidency and governing arrangement with Washington's approval, the basis for the freeze has collapsed, leaving no clear justification for holding onto the gold.

The Bank of England holds around 400,000 gold bars on behalf of central banks worldwide, and the custody business relies on London's reputation as a secure and reliable custodian. The release of Venezuela's gold could set a precedent and raise questions about the security of other countries' reserves held in Britain.

The UK Foreign Office has shown little inclination to act quickly, and a parliamentary motion filed in June has gathered only 30 signatures out of 650. As a result, it is likely that the case will drag on for some time, with no clear resolution in sight.