Venezuela's Gold Reserves Routed Through US Treasury Accounts

The Bank of England is set to release Venezuela's gold reserves, worth an estimated $4 billion, through US Treasury accounts as part of a deal aimed at financing reconstruction after recent earthquakes. The agreement was struck between representatives of the 2015 National Assembly and Chavista leaders now headed by interim President Delcy Rodríguez.

The assets include a $120 million surplus from a gold swap between the Central Bank of Venezuela and Deutsche Bank that was terminated in 2019, as well as 31 metric tonnes of gold held at the Bank of England. Funds will be directed towards housing, health centers, and schools in affected areas, with a permanent audit plan in place to oversee expenditures.

National Assembly deputy Ramón López said safeguards have been designed 'so that nothing is diverted from the purpose of the spending' during reconstruction. The arrangement mirrors the existing system for Venezuela's oil revenues, which are managed by the US Treasury and disbursed to Caracas at Washington's discretion.