Venezuela's government and opposition are nearing a deal to move approximately $4 billion worth of gold reserves, currently held at the Bank of England, to the Federal Reserve Bank of New York. This proposed agreement aims to resolve a long-standing dispute over the 31 metric tons of gold, which has been frozen in London since 2018 due to the UK's non-recognition of then-President Nicolas Maduro's government.
Under the emerging deal, the interim government of Delcy Rodriguez would gain legal control over the gold, but it would not be immediately accessible for direct sale. Instead, the funds are earmarked for specific purposes, primarily the reconstruction efforts following a devastating earthquake in June 2026 that killed over 6,000 people. The gold would likely serve as collateral for government borrowings to fund these projects, with an emphasis on housing, health centers, and schools.
Crucially, the $4 billion will be routed through a U.S. Treasury-controlled account in New York, subject to international audits by independent firms to ensure transparent spending. This arrangement signifies a significant shift in financial control, as Washington will oversee the expenditure of Venezuelan sovereign gold, despite it belonging to Venezuela. The agreement comes after the capture of Nicolas Maduro by U.S. forces in January 2026 and the subsequent swearing-in of Delcy Rodriguez as acting president.
The value of the gold has fluctuated, growing from $1.95 billion in 2020 to over $4 billion by September 2026, partly due to rising gold prices. The deal also reportedly includes a separate $120 million surplus from a terminated 2019 gold swap with Deutsche Bank. For the Bank of England, this resolution ends an eight-year period as custodian of the politically sensitive assets, a situation that had become an awkward moment for London's ambition to be a trusted global hub for bullion storage.
While the gold has not yet left the vault, the cooperation between Maduro's successors and the opposition, who previously opposed him, in making this request indicates where political power in Venezuela has landed. The entity controlling the New York account will effectively manage a substantial portion of the country's earthquake reconstruction funds.
