Venezuela nears U.S.-backed deal to move $4 billion in gold from London to New York
Venezuela’s government and opposition are close to an agreement to transfer about $4 billion in central bank gold from the Bank of England to the Federal Reserve Bank of New York, under a U.S.-backed plan that would give Caracas legal control over the bullion but limit its immediate use to collateral.
Venezuela’s long‑running battle over control of its foreign gold reserves may be nearing a turning point, with government and opposition figures close to a U.S.-backed deal to move a large share of the bullion from London to New York.
Under the emerging agreement, about $4 billion worth of Venezuelan central bank gold held at the Bank of England would be transferred to the Federal Reserve Bank of New York. An interim government led by Vice President Delcy Rodríguez would gain legal control of the reserves once they are in New York.
Caracas would not be able to sell the gold immediately. Instead, under the reported terms, the bullion could be used as collateral for borrowing or in other structured operations, rather than converted straight into cash.
The move could end a seven‑year dispute over who has the right to manage the gold. That fight began after the United Kingdom recognised opposition leader Juan Guaidó as Venezuela’s interim president, creating rival claims on the central bank assets and tying them up in UK courts.
Shifting the reserves to the Federal Reserve would not in itself resolve Venezuela’s economic crisis, but it would turn frozen assets into a source of leverage. For a heavily sanctioned country with limited access to international markets, the ability to pledge gold as collateral could open some space to finance imports or shore up parts of the economy, depending on the detailed conditions attached to any new borrowing.
How those conditions are set, and who oversees compliance, will determine whether the deal becomes a step toward broader financial normalisation or remains a narrow, tightly controlled exception. Any announcement on the legal framework for the transfer, on the role of multilateral institutions, or on new borrowing backed by the gold will show how far this opening really extends.
Sources
- OSINT