Venezuela’s $4bn Gold Could Leave London

After years of legal disputes, Venezuela could move $4bn in gold reserves from London to New York. The government and opposition are close to an agreement to transfer the gold from the Bank of England to the Federal Reserve Bank of New York, according to the Financial Times.

Under the proposed arrangement, interim President Delcy Rodriguez’s government would gain legal control over the reserves but would not be able to sell them freely.

Instead, the gold could be used as collateral for loans, including to finance reconstruction following the devastating earthquakes in June.

The gold has been tied up in a legal dispute since 2019, when the UK and US recognized opposition leader Juan Guaido as Venezuela’s legitimate president. The case eventually reached the UK Supreme Court.

The current negotiations are part of broader US-backed talks between the Venezuelan government and opposition.

The agreement has not yet been finalized. The Bank of England will also require a British court ruling establishing who has legal authority over the gold before any transfer can take place.

(Reuters, mja)