Venezuela’s interim government and opposition leaders are reportedly close to an agreement that could allow the country to gain access to gold reserves worth about $4 billion currently held at the Bank of England.
The proposed agreement would see the 31 tonnes of gold transferred from London to the Federal Reserve Bank of New York, according to the Financial Times, citing people familiar with the negotiations.
Under the arrangement being discussed, the interim government led by Delcy Rodríguez would gain legal control of the reserves but would not be allowed to sell the gold directly.
Instead, the bullion could be used as collateral to secure loans to fund government spending, including reconstruction following the devastating double earthquake in June.
The gold has been at the centre of a legal and political dispute since 2019, when the United States, United Kingdom and other countries recognised opposition leader Juan Guaidó as Venezuela’s legitimate president.
The proposed agreement is part of a US-backed dialogue between Venezuela’s interim government and the opposition aimed at paving the way for fresh elections and greater international engagement.
The deal has not yet been finalised, and technical and legal issues still need to be resolved.
The Bank of England said it could not act on instructions concerning the gold until a further order from a UK court determines who has legal authority over the reserves.
The development comes amid efforts by Venezuela’s interim government and opposition to improve economic conditions and resolve longstanding political and financial disputes.