Venezuela Nears Deal to Move $4 Billion Gold to New York

Venezuela's government and an opposition faction are nearing an agreement to transfer approximately $4 billion in central bank gold reserves from the Bank of England to the Federal Reserve Bank of New York, according to reports. The proposed deal would grant legal control of the gold to Acting President Delcy Rodríguez's interim government but prohibit immediate sale, potentially allowing the reserves to be used as collateral for loans. Under the terms being negotiated, the gold could support borrowing for reconstruction efforts following twin earthquakes that struck Venezuela in June. However, the transfer remains contingent on a UK court ruling to determine which Venezuelan authority can lawfully instruct the Bank of England. The Bank of England has held about 31 metric tons of Venezuelan gold since 2019 amid disputes over the legitimacy of Nicolás Maduro's government. The proposed agreement has not been signed, and neither the Bank of England nor the Federal Reserve Bank of New York has confirmed the transfer. Sources familiar with the negotiations indicated that the deal would place the gold under US oversight to prevent unauthorized use.