Venezuela nears deal to move $4bn gold reserve to New York

Venezuela’s government and opposition are close to an agreement to transfer about $4 billion worth of the country’s gold reserves from the Bank of England to the Federal Reserve Bank of New York.

According to people familiar with the discussions, the proposed transfer has not yet been finalised and some technical issues still need to be resolved.

Under the proposed arrangement, the gold would be moved from the Bank of England’s vaults to the Federal Reserve Bank of New York. The interim government of Delcy Rodriguez would gain legal control of the reserves but would not be allowed to sell the gold immediately, according to the Financial Times.

The reserves could instead be used as collateral for government borrowing, including funding reconstruction following June’s twin earthquakes.

About 31 tonnes of Venezuelan gold have been held at the Bank of England for years. Control of the reserves has been at the centre of a legal dispute between Venezuela’s government and opposition since 2019, when the United Kingdom and other governments backed opposition leader Juan Guaido.

The dispute over the gold subsequently reached the UK courts.

The proposed agreement could resolve the long-running dispute over control of the reserves. Opposition groups have sought safeguards to prevent the gold from being misused, with the proposed arrangement expected to include restrictions and regular oversight.

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