UK Holds $1 Billion in Venezuelan Gold Amid Political Turmoil
The United Kingdom has indicated that over a billion dollars’ worth of Venezuelan gold will likely remain stored at the Bank of England following the arrest of Nicolás Maduro and the designation of an interim leader, Delcy Rodríguez.
In a recent address to Parliament, Foreign Secretary Yvette Cooper expressed that the gold, belonging to Venezuela’s central bank, is unlikely to be released because the UK does not recognize the current regime. Cooper emphasized the importance of maintaining pressure for a democratic transition in Venezuela, which reflects the will of its people.
“The gold stays where it is,” remarked Rhona O’Connell, head of market analysis at StoneX. She noted that the situation creates complications for the gold held at the Bank of England, especially as Maduro has been seeking its release.
Venezuela has faced a severe economic crisis, during which it sold significant gold reserves—reportedly about 85 metric tons in early 2016. Since then, the country has made further minor gold sales.
In 2020, Maduro initiated legal action against the Bank of England, resulting in conflicting claims regarding who should represent Banco Central de Venezuela, which owns the gold but has been under U.S. sanctions since April 2019. Although an initial UK High Court ruling favored the Bank of England, the Court of Appeal later overturned this decision, and the UK Supreme Court recognized Juan Guaidó as Venezuela’s legitimate president.
As of 2020, the gold’s value was estimated at around $1.95 billion. However, ongoing increases in gold prices suggest that it could now be worth over $3 billion.
Additionally, Swiss authorities have frozen assets linked to Maduro and his associates, following his arrest by U.S. forces, although the total value of these assets remains undisclosed.
In the years prior, Venezuela exported approximately 113 metric tons of gold to Switzerland, valued at about $5.2 billion, according to Swiss customs data.
For continued updates on this evolving situation, further details will be released as available.
