Venezuela nears deal to move $4 billion gold reserve to New York, FT says

Venezuela's government and opposition are reportedly nearing a deal to transfer the country's gold reserves from the Bank of England to the Federal Reserve Bank of New York, according to the Financial Times. The gold holdings, valued at around $4 billion, are currently under the control of the Bank of England. Should the agreement be finalized, the interim government led by Delcy Rodríguez would gain legal ownership of the gold.

However, the government would be prohibited from selling the gold immediately, the FT reported, citing four sources familiar with the negotiations. According to the report, the gold could serve as collateral for government borrowing to finance expenditures, such as reconstruction work following the devastating earthquakes that struck Venezuela in June.

The agreement would bring an end to a seven-year dispute that began in 2019 when the U.S., UK and other governments recognized opposition leader Juan Guaidó as the nation's legitimate president.