London: Venezuela’s acting government and a faction of the country’s opposition are nearing an agreement over approximately USD 4 billion in gold held by the Bank of England according to Reuters and the Financial Times.
The proposed deal would move about 31 metric tonnes of gold from London to the Federal Reserve Bank of New York or place it under the supervision of the United States Treasury.
However reports that the gold has already left Britain are inaccurate. The arrangement remains under negotiation and any transfer would require the resolution of legal and political questions surrounding control of the reserves.
Under the proposal the acting government led by Delcy Rodríguez would obtain legal authority over the gold but would not be permitted to sell it freely. The reserves could instead serve as collateral for borrowing under United States (US) oversight.
Some of the financing could support reconstruction following the two powerful earthquakes that struck Venezuela in June. The money has not yet been formally released or exclusively earmarked for reconstruction.
The Bank of England has withheld access to the gold for years because of a dispute over which Venezuelan authorities it should recognise. The legal battle intensified in 2019 after Britain and several other countries recognised opposition leader Juan Guaidó as interim president instead of Nicolás Maduro.
Supporters of the proposed agreement say it could make valuable national assets available for recovery without allowing either political side unrestricted control. They also view it as part of wider efforts to reopen Venezuela’s economy and restructure its substantial external debt.
Critics may question why Venezuelan sovereign reserves would remain under foreign supervision rather than return directly to Caracas. Opposition representatives have demanded strict safeguards to prevent misuse.
The Bank of England would need a clear legal basis before releasing the bullion. Until an agreement is finalised and the necessary court decisions are secured the gold will remain in London despite negotiations over its possible transfer.
