Venezuelan gold standoff nears resolution
A seven-year legal dispute over the custody of 31 metric tons of Venezuelan central bank gold, valued at around $4 billion and held in London by the Bank of England, is nearing a resolution. Venezuela's government and opposition are reportedly close to an agreement that would transfer the bullion to the Federal Reserve Bank of New York. The standoff began when the UK refused to recognize then-President Nicolas Maduro’s administration after he requested part of his country’s gold reserves back in 2018. The conflict intensified as rival factions within Venezuela's central bank sent conflicting instructions, leading to a legal battle that reached Britain’s Supreme Court in December 2021. The court ruled the UK could not recognize Maduro but did not resolve ownership, leaving the gold effectively frozen. Under the proposed deal, interim President Delcy Rodriguez would gain control of the reserves without immediate access for sale; instead, they may be used as collateral to secure government borrowing. The Bank of England has stated it cannot act until a UK court provides clarity on legal authority over the account. The U.S., meanwhile, appears interested in facilitating such transfers, with Treasury Secretary Scott Bessent recently mentioning Venezuela's gold shipments.
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Topics: Bank of England Federal Reserve Bank of New York gold reserves international custody disputes Venezuela