Venezuela’s government and opposition are reportedly nearing an agreement to transfer the country’s central bank gold reserves, valued at approximately $4 billion, from the Bank of England to the Federal Reserve Bank of New York. The deal would grant legal control over the gold to the interim government led by Delcy Rodríguez, though immediate sale of the assets would be prohibited.

Sources familiar with the discussions indicate that the gold reserves could instead be used as collateral to secure loans aimed at funding government expenditures, including reconstruction efforts following a devastating double earthquake in June. This potential arrangement emerges from a U.S.-backed negotiation between the interim government and opposition groups, marking one of the first substantive outcomes in efforts to resolve the long-standing dispute over Venezuela’s gold.

The contention over the gold dates back to 2019, when the United States, United Kingdom, and several other nations recognized opposition leader Juan Guaidó as Venezuela's legitimate president. Since that time, the opposition has asserted control over the bullion stored in the BoE’s vaults, a stance that culminated in legal battles reaching the UK Supreme Court.

While negotiations show progress, officials caution that the agreement is not yet finalized, and technical details remain to be resolved. If completed, the transfer would symbolize a significant step toward Venezuela’s re-engagement with the international community following the U.S. seizure of then-President Nicolás Maduro's assets in January and subsequent easing of certain sanctions on the country’s economy.

Rodríguez, who serves as vice president and interim leader, has prioritized reviving Venezuela’s economy ahead of forthcoming elections. The most recent electoral contest in 2024 saw Maduro declare victory despite opposition claims of a wide margin defeat.

Last month, the government and opposition jointly announced efforts to restore access to 31 tonnes of gold stored at the BoE. The opposition has emphasized the need for stringent oversight to prevent misuse of the reserves, highlighting longstanding accusations of corruption within the socialist government.

An opposition participant in the negotiations stated, “The gold is going to the US but Delcy won’t have direct access to it. It will be supervised and restricted.” The Bank of England noted that the UK courts would ultimately determine legal authority over the account. Representatives from Caracas and the opposition declined to comment on the ongoing talks.