Venezuela's government and opposition are reportedly nearing a deal to move $4 billion worth of the central bank's gold reserves from the Bank of England to the Federal Reserve Bank of New York. The Financial Times reported on this development, citing sources familiar with the discussions. This move is significant as it aims to resolve a multi-year custody dispute that began in 2019.
The agreement would allow the interim government, led by Delcy Rodríguez, to gain legal ownership of the roughly 31 metric tonnes of gold. However, an opposition figure familiar with the talks indicated that while the gold would go to the US, Delcy Rodríguez would not have direct access to it. The use of these funds would be supervised and restricted, likely requiring approval from the US Treasury Department and State Department.
This deal is intended to allow Venezuela to utilize the gold as financial collateral for critical national reconstruction projects, while also meeting international oversight requirements. The push to release these funds has been amplified by the need to address Venezuela’s severe social and economic problems, particularly worsened after recent earthquakes. The US, acting as a mediator in these talks, is keen on ensuring the funds are used for humanitarian and reconstruction efforts rather than committing its own funds to the local reconstruction agenda.
