Venezuela and Opposition Near Agreement on Transfer of Central Bank Gold
After seven years of legal dispute over the ownership of Venezuela's central bank gold reserves held at the Bank of England, a resolution appears near. The government and opposition are reportedly close to an agreement that would transfer control of approximately 31 metric tons—worth around $4 billion—from London to New York’s Federal Reserve Bank. The standoff began in 2018 when Venezuela requested part of its bullion back from the UK, which refused due to not recognizing then-President Nicolas Maduro's government. The issue escalated through British courts and reached a stalemate after conflicting instructions were sent by rival central bank boards. A Supreme Court ruling in December 2021 did not resolve ownership but returned the matter for further legal review. Under current discussions, interim leader Delcy Rodriguez would gain control of the gold without immediate access to sell it; instead, it could be used as collateral for government borrowing and reconstruction efforts following recent earthquakes. The Bank of England has stated that no action will occur until a court order is issued.
Tickers: $BOE
Topics: Bank of England Federal Reserve Bank of New York gold custody legal resolution Venezuela