Venezuela nears deal to move $4 billion in gold reserves to New York

The Venezuelan government and opposition are reportedly nearing an agreement to transfer approximately $4 billion in central bank gold reserves from the Bank of England to the Federal Reserve Bank of New York.

Under the proposed terms, the interim government led by Delcy Rodríguez would obtain legal control over the roughly 31 metric tons of gold. However, the agreement would not permit the immediate sale of the reserves. Instead, the gold could serve as collateral for government borrowing to fund national recovery efforts, specifically following devastating earthquakes in June.

The move could resolve a seven-year legal dispute that began in 2019 when the United Kingdom and other nations recognized opposition leader Juan Guaidó as the legitimate president. Since that period, control over the assets held in London has been contested. This potential agreement represents a significant step in the negotiation process between the interim administration and the US-backed opposition, following recent shifts in international engagement and the easing of some economic sanctions.