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Venezuela and its opposition want gold back from Bank of England vaults

Venezuela’s government and opposition have jointly asked for about $4bn in gold reserves held at the Bank of England to be released, saying the money would help finance reconstruction after earthquakes that killed more than 6,000 people. The request comes after US-backed negotiations and could unlock access to roughly 31 tonnes of bullion blocked since 2018, when the UK stopped recognising the Maduro-aligned government. The move has little direct impact on gold prices, but it is important for Venezuela’s finances and debt restructuring efforts, especially as the country battles hyperinflation, sanctions, and a sovereign debt burden estimated at $240bn. The article also notes Venezuela is seeking access to $4.6bn in IMF special drawing rights and has already tapped about $350mn from an IMF tranche in July. The development underscores gradual reopening of international funding channels and continued legal/political contest over control of state assets.

Category

Gold

Sentiment

Neutral

Event

Market commentary

Reading time

1 min