Full Breakdown
Venezuela Nears Deal to Transfer $4 Billion in Gold Reserves to New York
By Drooid · · How we work
Core Development: Transfer of Locked Gold to the Federal Reserve
Venezuelan authorities and a faction of the opposition are close to finalising an arrangement that would move roughly 31 metric tons of gold—valued at about $4 billion—from the Bank of England’s underground vaults to the Federal Reserve Bank of New York. Under the proposed terms, the interim government led by Acting President Delcy Rodríguez would obtain legal control of the bullion but would be barred from selling it outright. Instead, the metal could be pledged as collateral for borrowing, with proceeds earmarked for reconstruction after the twin earthquakes that struck on June 24 2026.
Background & Context
The gold has been frozen in London since early 2019, when the United Kingdom, the United States and dozens of other nations recognised opposition leader Juan Guaidó as Venezuela’s legitimate president and refused to acknowledge the legitimacy of then-President Nicolás Maduro. The Bank of England has withheld the reserves, citing uncertainty over legal ownership. The dispute persisted through a series of UK court battles, including a Supreme Court hearing, and remained unresolved despite Maduro’s capture by U.S. forces in January 2026.
Timeline of Key Events
| Date | Event |
|---|---|
| 2019 | UK joins international recognition of Juan Guaidó; gold reserves frozen. |
| January 2026 | U.S. operation captures Nicolás Maduro. |
| June 24 2026 | Twin earthquakes devastate parts of Venezuela. |
| July 2026 | Acting President Delcy Rodríguez writes to King Charles III requesting release of the gold. |
| September 18 2026 | Reuters reports negotiations are nearing a deal to move the gold to New York. |
Data & Statistics
- Gold quantity: Approximately 31 metric tons held in the Bank of England.
- Monetary value: Roughly $4 billion at current market prices.
- Inflation: Venezuela’s inflation rate exceeded 530 % over the 12 months to August 2026.
Official Statements & Responses
- A Bank of England spokesperson said the institution cannot act until a UK court issues a further order on legal authority.
- The Venezuelan communications ministry declined to comment.
- The New York Federal Reserve and the U.S. Treasury did not respond to requests for comment.
Opposition’s Conditions
One opposition figure involved in the talks said the gold would be transferred to the United States but would remain subject to strict oversight to prevent misuse.
Why It Matters
Unlocking the gold would give the acting government a tangible asset to pledge for foreign financing, easing fiscal strain from hyperinflation and post-earthquake reconstruction. Shifting custodial control from London to New York could also provide a more predictable legal framework.
What’s Next
Negotiations remain ongoing, with technical details still being worked out. The United Kingdom announced an upgrade of diplomatic relations with Caracas, including the restoration of an ambassador, which could accelerate the legal process. Both the Venezuelan government and the opposition have indicated that a final agreement could be reached in the coming weeks, after which the gold would be transferred to the Federal Reserve Bank of New York under the stipulated oversight mechanisms.