Venezuela gold to move from London to New York Fed

Venezuela has reached an agreement to transfer its long-frozen gold reserves from London to the New York Fed, according to Financial Times reporting. The 31 tonnes of gold, valued at close to $4 billion, have been held in the Bank of England’s underground vaults since 2018. Under the new deal, Venezuela will gain legal ownership of the gold, but it will not be allowed to sell it or receive it physically. The bullion will instead be used as collateral for loans from international financial institutions.

Why the gold was frozen in the first place

The crisis began in 2018 after Venezuela’s disputed presidential election. London refused to recognize Nicolas Maduro as president and instead backed opposition leader Juan Guaido, using this as grounds to keep the gold locked in its vaults. The reserves stayed frozen even after Maduro was arrested by the United States in January and after the Delcy Rodriguez government made direct appeals to King Charles of England. For seven years, Caracas has been unable to access its own gold.

What the new deal actually changes

The agreement was reached in negotiations between the administration led by Delcy Rodriguez and opposition representatives. Legal control of the gold will be handed to Caracas, but strict conditions imposed by the Western financial system remain in place. The reserves cannot be converted into cash or sold on the open market. Instead, the 31 tonnes will serve as a guarantee for foreign borrowing and credits Venezuela seeks from international lenders. The money raised this way is expected to fund reconstruction after two devastating earthquakes in June and to help fight Venezuela’s long-running inflation crisis.

Gold stays in the West, just in a different vault

Despite the agreement, the gold will not return to Venezuela. It will simply move from London’s underground vaults to New York’s, remaining held by Western institutions. In effect, the reserves stay captive, shifting from one Western capital to another rather than coming home to Caracas.