Venezuela nears deal to move US$4bil gold reserve to New York

Venezuela is reportedly nearing an agreement to transfer its gold reserves, valued at around US$4 billion, from the Bank of England to the Federal Reserve Bank of New York. This comes from a report in The Financial Times, though Reuters could not independently verify the claim. The interim government, led by Delcy Rodriguez, would temporarily hold legal control over the gold but would not be permitted to sell it immediately.

Instead, the reserves could serve as collateral for government borrowings, including post-earthquake reconstruction efforts. The British foreign office spokesperson clarified that the British government is not involved in the legal proceedings determining who should control the Venezuelan gold stored in the Bank of England. The Bank of England, however, stated it cannot proceed until a subsequent order from the UK Court settles the dispute regarding legal authority over the account.