Venezuela nears deal to move USD4bn gold reserve to New York, FT says

BENGALURU: The Venezuelan government and the opposition are close to an agreement to transfer the central bank’s gold reserves, worth about USD4 billion, to the Federal Reserve Bank of New York from the Bank of England, the Financial Times reported on Friday.

Reuters could not immediately verify the report, which cited four people familiar with the discussion.

Under the proposed deal, the interim government of Delcy Rodriguez would gain legal control over the gold but would be unable to sell the holdings immediately, the report said.

Instead, the reserve could potentially be used as collateral for government borrowings, including for reconstruction from June’s twin earthquake, the newspaper added.

The Federal Reserve Bank of New York, the Bank of England and the British Foreign Office did not immediately respond to Reuters’ requests for comment outside regular business hours. The Venezuelan government and the opposition could not be reached for comment.