Venezuela's Gold Reserves Headed to US as Deal Nears with Opposition
Venezuela's gold reserves are reportedly being transferred from the Bank of England to the Federal Reserve Bank of New York. According to a Financial Times report, the Venezuelan government and opposition are close to reaching an agreement on this transfer, which is worth around $4 billion.
The deal, if reached, would allow the Venezuelan government to gain legal control over the gold reserves, but it would not be able to sell them immediately. Instead, the gold could be used as collateral for government borrowing to cover various expenditures, including reconstruction efforts after a series of earthquakes in 2024.
Venezuela has 31 tonnes of gold stored at the Bank of England, which was frozen after the country's 2018 presidential election. The US, UK, and other countries refused to recognize Nicolás Maduro as the elected president, leading to this freeze.