Venezuela's $4 Billion Gold Reserve on the Move
The Venezuelan government is close to reaching an agreement with the opposition to transfer its $4 billion gold reserve from the Bank of England to the Federal Reserve Bank of New York.
This move comes after years of a legal dispute over who has control of the 31 metric tonnes of gold being held by the Bank of England, which is valued at about US$1.2 billion per tonne.
The proposed deal would allow the interim government to gain legal control of the gold but would prevent it from selling the holdings immediately. Instead, the reserve could be used as collateral for government borrowings, including for reconstruction following June's twin earthquakes.
A spokesperson for the British foreign office stated that the UK government is not a party in the legal case and that the Bank of England has been withholding the gold due to its non-recognition of Nicolas Maduro's government.