Key facts
- Venezuela's government and opposition are nearing an agreement to move approximately $4 billion in gold reserves.
- The gold, held at the Bank of England, is slated for transfer to the Federal Reserve Bank of New York.
- The agreement is reportedly backed by the US.
- The gold will be deposited in a US Treasury account and audited by international firms.
- Resources are intended for post-earthquake recovery efforts, including housing and healthcare projects.
- The US has previously seized control of Venezuelan export revenues and maintained economic sanctions.
The Venezuelan government and opposition are reportedly close to an agreement to move approximately $4 billion worth of the central bank's gold reserves from the Bank of England to the Federal Reserve Bank of New York, according to the Financial Times. This move is part of a US-backed dialogue aimed at supporting post-earthquake recovery efforts.
Ramón López, a member of the opposition delegation, stated that the gold would be deposited in a US Treasury account and be subjected to external audits by international firms. The funds are earmarked for housing and healthcare projects, as well as aid for families affected by a recent earthquake. The agreement also includes reforms to the Supreme Court.
Successive UK governments have followed the US in refusing to recognize the Nicolás Maduro government and return the gold to Caracas. Venezuelan authorities previously attempted to reclaim the reserves through legal channels during the Covid-19 pandemic, but their efforts were rejected by UK courts. The US Treasury has also issued a limited license for relief-related transactions following the earthquake.
This potential transfer follows a history of US actions involving Venezuelan assets, including the seizure of export revenues and the maintenance of economic sanctions. The US Treasury has been deducting costs of its military operations from Venezuela's oil revenues, according to a commission evaluating state assets for privatization. Apart from the gold reserves, Venezuela has also sought the release of other frozen assets, including IMF Special Drawing Rights and bank accounts.