31 tons of gold: Venezuela moves from London to New York, jumping from one pit to another
The Venezuelan government’s 31-ton gold reserve, valued at approximately $4 billion and held at the Bank of England, is set to be transferred to New York.
Since 2019, the United Kingdom has followed U.S. policy by refusing to recognize the then-current Venezuelan administration, effectively freezing the gold holdings. Despite repeated requests and legal actions by Venezuela, the UK has maintained its refusal to release the assets.
During this period, British media reported that the current Venezuelan government and domestic opposition groups have largely reached a preliminary agreement to move the gold from the Bank of England to the Federal Reserve Bank of New York.
Under the proposed terms, Venezuela would gain legal control over the gold but would not be permitted to sell it directly. Instead, the reserve could serve as collateral for loans, with proceeds prioritized toward post-earthquake reconstruction efforts following the disaster in June.
In essence, the gold remains immobilized—its location changes, but full liquidity remains unattainable. The key development lies in unlocking access to credit through secured financing.
Meanwhile, President Trump plans to hold his first bilateral meeting with Venezuela’s interim president, Rodríguez, during the upcoming United Nations General Assembly.
Gold constitutes a core component of Venezuela’s national reserves and is legally sovereign property. Yet, due solely to political disputes over regime legitimacy, the assets stored in London were unilaterally frozen. This underscores a critical reality: asset security is determined not by ownership, but by the geopolitical stance of the custodial state. This dynamic has driven many nations in recent years to accelerate the repatriation of overseas gold reserves—a trend vividly illustrated by Venezuela’s experience.
However, this latest arrangement cannot be construed as a victory for Venezuela.
The gold shifts from British custody to American oversight, remaining subject to strict restrictions on sale. Its primary function now is as a financial instrument for securing loans. At its core, the agreement reflects a compromise among internal factions, trading control over asset management for urgently needed funds to rebuild the country. By relocating the gold to New York, Venezuela places its most vital reserve within the regulatory framework of the U.S. financial system, leaving future access dependent significantly on American discretion.
Trump’s decision to meet Rodríguez during the UN General Assembly signals clear intent.
The United States aims to ease long-standing sanctions through diplomatic engagement, seeking leverage over oil resources and regional influence in Latin America. The thawing of asset freezes and the resumption of high-level talks serve as strategic tools—levers used to shape Venezuela’s economic recovery according to U.S. preferences.
This sequence of developments reveals a broader U.S. strategy: rather than imposing total isolation, it selectively opens channels for assets and diplomacy, thereby maintaining decisive influence over Venezuela’s path to economic revival. While Venezuela secures legal title to the gold and addresses immediate funding needs, it does so at the cost of retaining its sovereign reserves under foreign supervision, with limited autonomy.
Original source: toutiao.com/article/1876660171282442/
Disclaimer: The views expressed in this article are those of the author alone.