Venezuela, Opposition Weigh $4bn Gold Transfer Deal

Venezuela’s interim government and a faction of the country’s opposition are nearing an agreement to move about $4 billion worth of Venezuelan gold reserves from the Bank of England to the United States, according to people familiar with the negotiations cited by Reuters.

The proposed arrangement would move the gold to the Federal Reserve Bank of New York, or place it under an arrangement involving the US Treasury, while giving Venezuela’s interim government legal control of the reserves under restrictions on how the assets could be used.

The deal has not yet been finalised. Reuters said it could not independently verify the Financial Times report on which its initial account was based.

The negotiations are part of broader discussions involving Venezuela’s political system, oil industry and debt restructuring.

About 31 tonnes of gold are involved

The reserves reportedly comprise about 31 metric tonnes of Venezuelan gold that have been held at the Bank of England for years.

The Bank of England confirms that it provides custody services for gold belonging to other central banks and says gold held for customers remains the property of those customers.

The Venezuelan gold became the subject of a prolonged legal and political dispute after rival factions claimed authority over the country’s central bank.

The dispute was closely connected to international recognition of Venezuela’s competing political authorities.

The UK government previously intervened in the legal proceedings, with the British government stating that it recognised Juan Guaidó as Venezuela’s legitimate president at the time.

That recognition affected who could exercise control over Venezuelan state assets held in Britain.

Proposed move would put gold in New York

Under the emerging proposal, the gold would leave the Bank of England and be transferred to the United States.

Reuters reported that the Federal Reserve Bank of New York is the proposed destination, although other details of the custody arrangement remain under discussion.

The proposed structure is designed to prevent the reserves from simply being sold or spent by the Venezuelan government.

Instead, the gold could be used as collateral for borrowing, with proceeds potentially directed toward reconstruction and other approved needs.

That would allow Venezuela to unlock some of the economic value of the reserves without immediately liquidating the physical gold.

Reconstruction is a major reason for the proposal

The discussions come after devastating earthquakes in Venezuela in June.

Earlier reporting said the Venezuelan government and sections of the opposition had agreed to seek access to the gold to help finance reconstruction.

The proposed controls are intended to determine how any funds generated against the reserves would be used.

Financial Times reporting cited by Reuters said the gold could support borrowing for reconstruction rather than being sold outright.

The arrangement would therefore provide potential access to financing while keeping the underlying gold reserve intact.

Opposition faction involved in negotiations

The talks involve representatives associated with Venezuela’s opposition-led legislature established in 2015.

They are negotiating with the interim government led by Delcy Rodríguez.

The talks extend beyond the gold.

Reuters reported that the negotiations also cover reforms to Venezuela’s political system, oil agreements and a major restructuring of the country’s debt.

The participation of opposition figures is significant because control over Venezuelan state assets has been closely tied to the country’s political dispute.

The proposed gold arrangement could therefore become part of a wider attempt to establish agreed mechanisms for managing Venezuela’s international assets.

Legal control remains an important issue

The transfer cannot simply take place because the Venezuelan government and opposition reach a political agreement.

The legal status of the gold must also be resolved.

The Bank of England has previously been involved in litigation over competing claims to access Venezuela’s reserves.

The UK Supreme Court considered the question of who had authority to access gold held by the Bank on behalf of the Venezuelan state.

The legal dispute illustrates why the proposed transfer requires more than a political announcement.

The relevant authorities must establish who has legal authority to instruct the Bank and how the gold can be transferred under applicable law.

The Bank of England acts as custodian

The Bank of England’s role is important to understanding the proposed transaction.

The central bank says it holds around 400,000 gold bars in its vaults and provides custody services for the UK government, other governments and central banks.

It also explains that customer gold is held on an allocated basis, meaning the customer retains title to specific bars rather than simply holding a claim against the Bank.

That means moving Venezuela’s gold would involve changing the custody arrangements rather than transferring gold that belongs to the Bank of England.

The Bank’s public information does not identify Venezuela’s specific holdings in the material reviewed for this report.

Proposed US oversight would restrict access

The proposed arrangement would give the United States a significant role in controlling access to the funds generated from the gold.

Reuters reported that the US could oversee the money and restrict its use to approved purposes.

The restrictions are intended to address concerns that the reserves could otherwise be diverted or used without adequate controls.

Opposition participants have also pushed for transparency and monitoring mechanisms around the funds.

That issue could prove important because the gold represents one of Venezuela’s most valuable immediately identifiable reserve assets.

Broader economic negotiations are underway

The gold discussions are taking place alongside a wider attempt to reopen Venezuela’s economy.

US companies have recently shown renewed interest in Venezuelan oil and mining projects.

Reuters reported on September 16 that US investment firm Heeney Capital secured operational and export rights for the Choco gold mine through a long-term partnership with Mercuria, involving an estimated $1 billion investment. Continental Resources also signed a memorandum of understanding with Venezuela’s state oil company to explore the Ayacucho 2 oil block.

These developments point to broader negotiations over Venezuela’s natural resources and access to international capital.

The proposed gold arrangement is separate from those commercial agreements, but it forms part of the same wider economic reopening process.

Venezuela faces severe economic pressure

Unlocking the gold could provide the government with additional financial options at a time when Venezuela continues to face severe economic difficulties.

The country has endured years of economic instability, sanctions and declining productive capacity.

Recent reporting has also highlighted the challenge of rebuilding after the June earthquakes, which caused thousands of deaths and widespread destruction.

The proposed use of gold as collateral would allow the government to raise financing without necessarily selling the entire reserve.

However, borrowing against the gold would also create a liability that Venezuela would eventually have to service.

Deal is not yet final

Despite the progress reported by Reuters and the Financial Times, the proposed transaction remains subject to unresolved issues.

Reuters said it could not immediately verify the Financial Times report independently and that people familiar with the discussions described the negotiations as ongoing.

The parties still need to settle technical arrangements, legal authority, custody, oversight and the precise conditions governing use of the reserves.

There is therefore no basis yet to describe the gold as having been transferred from London to New York.

The value of the reserve can also change with international gold prices. The roughly $4 billion figure reflects its estimated market value rather than a fixed cash amount.

What happens next?

If the agreement is completed, the transfer could provide Venezuela with access to financing while creating a controlled mechanism for using one of its largest overseas reserve assets.

The arrangement would also mark a significant development in the long-running dispute over who can exercise control over Venezuelan state assets held abroad.

For the opposition, oversight of the reserves is likely to remain a central concern. For the interim government, access to financing could support reconstruction and broader economic plans.

For the United States and United Kingdom, the proposed arrangement would require a balance between facilitating Venezuela’s access to its assets and maintaining legal and financial safeguards.

For now, the gold remains tied to an agreement that is still being negotiated.

The proposed transfer is therefore best understood as a developing political and financial arrangement, not a completed movement of $4 billion in Venezuelan gold.