Venezuela's government and opposition have jointly agreed to push for the return of $4 billion in gold reserves held at the Bank of England, after nearly two weeks of US-backed negotiations. The two sides say the funds are needed for reconstruction after June earthquakes that killed more than 6,000 people, while the country's monthly inflation climbed to 19.9% in July.
Venezuela's government and opposition have agreed on one shared demand after nearly two weeks of US-backed negotiations: both sides now want $4 billion in gold reserves back from the Bank of England. The demand appeared in a joint statement issued Wednesday night.
A vault frozen since 2018
The UK has declined to recognize Venezuela's government since 2018, which has in effect blocked access to some 31 tonnes of gold stored in the Bank of England's vaults. The funds have been tied up in a lengthy court battle ever since. Interim president Delcy Rodríguez said last month that she had written to King Charles to request the gold's release from the vaults under Threadneedle Street.
The Bank of England declined to comment and has been awaiting legal clarity on who controls the bullion before releasing it. The UK foreign office said the British government is not a party to the legal case, adding that it maintains its position of support for a democratic transition in Venezuela.
Reconstruction money and rising prices
The joint statement said the funds were needed for reconstruction following June's earthquakes, which killed more than 6,000 people. Venezuela's economy, already strained by decades of mismanagement, corruption and US sanctions, is still reeling from the disaster. On Wednesday, the country's central bank said the earthquakes had contributed to monthly inflation rising to 19.9% in July, up from 13.8% in June; economists estimate annual inflation at about 575%.
An opposition figure involved in the talks told the FT that transparency mechanisms would be placed on the recovery effort so it doesn't get stolen by the government. According to the Financial Times: "There's no naivety on our part," the figure said, adding that Rodríguez's interim government are not democratic reformers.
Wider push for frozen assets
Beyond the gold, Rodríguez's government is also seeking access to about $4.6 billion in IMF special drawing rights. Venezuela has already regained some access to international funds following Maduro's capture, tapping about $350 million from an IMF tranche in July after restoring relations with the fund this year. The country's sovereign debt pile stands at about $240 billion, making its ongoing restructuring the largest in history, the FT reported in June.
The talks that produced the gold demand do not include opposition leader María Corina Machado, who won last year's Nobel Peace Prize and has been based in Washington since late last year.
Source: Financial Times
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