Venezuela's Gold Heads to New York Amid Shift in US Stance
Venezuela's long-standing dispute over its gold reserves may finally be nearing an end. The country's interim government and parts of the opposition are negotiating a mechanism to release the 31 tons of gold currently locked away in the Bank of England's vaults.
The proposed arrangement would allow the Venezuelan government to gain legal title to the gold, but it would not be repatriated or sold. Instead, it could be used as collateral for state borrowing, including funds for rebuilding areas affected by recent earthquakes.
According to reports, the gold would be transferred to Manhattan and placed in accounts overseen by the US Treasury Department, subject to outside audits. The proceeds would be earmarked specifically for housing, health clinics, and schools in the earthquake zone.
The standoff dates back to 2019, when Britain recognized Juan Guaidó as Venezuela's legitimate leader and froze the country's access to its gold reserves. Since then, the case has been tied up in British courts, with no clear resolution in sight.
However, recent developments suggest that Washington is now more inclined to facilitate the release of the gold rather than block it. The change in stance may be attributed to the capture of Nicolás Maduro and the subsequent appointment of a new interim government led by Juan Guaidó's successor, José Brito Rodríguez.