Venezuela’s government and opposition are close to agreeing a deal that would transfer roughly $4 billion worth of gold reserves from the Bank of England to the Federal Reserve Bank of New York, potentially drawing a line under a dispute that has dragged on for seven years.
Under the terms being discussed, Venezuela’s interim government, led by Delcy Rodríguez, would gain legal control of the gold but would not be permitted to sell the holdings outright. Instead, the reserves could be used as collateral to borrow against, with proceeds potentially directed towards reconstruction efforts following the devastating double earthquake that struck the country in June.
Four people familiar with the talks confirmed the outline of the arrangement to the Financial Times, describing it as one of the first concrete results from a US-backed negotiation process between the Rodríguez administration and the Venezuelan opposition.
The dispute over the 31 tonnes of bullion stored in the Bank of England’s vaults dates to 2019, when the United States, the United Kingdom and several other governments recognised opposition figure Juan Guaidó as Venezuela’s legitimate president. That recognition handed the opposition a claim over the gold, a legal battle that eventually reached the UK Supreme Court.
The Bank of England has made clear that it requires a further court order establishing legal authority before it can act on any instructions relating to the account. That procedural step means the process of finalising technical details could still take some time, even if political agreement is reached.
The potential deal sits within a broader thawing of relations. Following the US seizure of then-president Nicolás Maduro in January, Washington lifted some of its sanctions on Venezuela. The IMF resumed official dealings with Caracas in April after a seven-year gap. And this week, the UK and Venezuela agreed to upgrade diplomatic ties, with Britain restoring an ambassador to Caracas. Jorge Rodríguez, current head of the National Assembly and leader of the government’s negotiating delegation, visited London earlier this week for talks at the Foreign, Commonwealth and Development Office.
The opposition, which accuses the socialist government of decades of corruption and economic mismanagement, has insisted on controls to prevent the reserves from being misused. An opposition figure involved in the negotiations said the gold would be supervised and access restricted once transferred, offering reassurance to those concerned about how the funds might be deployed.
Talks between government and opposition delegations continued in Caracas this week. Both sides declined to comment on the specifics.
