Venezuela gold reserves to move from UK to US vaults

Approximately 31 tons of Venezuelan gold, valued at roughly $4 billion, is being transferred from vaults in the United Kingdom to the Federal Reserve Bank of New York. The move follows a new agreement between the Venezuelan government and the opposition following a change in leadership in the country.

Under the terms of the agreement, legal control of the gold will pass to the new Venezuelan administration, but the assets cannot be sold directly. Instead, the reserves will serve as collateral for loans from international financial institutions. The funds generated from this arrangement are intended to support reconstruction efforts following devastating earthquakes in June and to combat chronic hyperinflation.

The gold had been frozen in London since 2018 due to political disputes regarding the legitimacy of the previous administration under Nicolas Maduro. The transfer was facilitated by Washington to address Venezuela's urgent need for liquidity following natural disasters and economic instability.