The future of the 1.02 million troy ounces of Venezuelan gold held in the Bank of England is uncertain following the dissolution of Juan Guaidó’s interim government. The 31 tons of gold, worth more than $1.850 billion, has been disputed between the two governments of the country since 2019.
Unclear Fate for Venezuela’s $1.8 Billion in Gold
The fate of 1.02 million troy ounces of Venezuelan gold held in the Bank of England vaults in London is uncertain following the dissolution of Juan Guaidó’s interim government. The 31 tons of gold, valued at more than 1,850 million dollars, had been disputed between the two governments of the country since 2019 when Guaidó formed a parallel government.
While UK courts had ruled in favor of Guaidó in July, the dissolution of the interim government casts doubt on the possible future of this gold as well as other Venezuelan offshore properties, with some lawmakers saying it could open the door for Nicolás Maduro to have a valid claim on them.
Deputy Freddy Guevara mentioned this possibility during the session. He said:
We have been warned by overseas that, with this reform, the safety of foreign assets could not be guaranteed. How can we just jump into the void?
The session ended with 72 members voting to dissolve the interim government, 29 voting against, and 8 abstaining.
Protection Measures
Following the dissolution, a parallel government has been established with a Board of Directors and Asset Protection charged with organizing and safeguarding the information of Venezuelan properties and businesses abroad. The board, made up of five people, will have broad powers and be protected under the legality of assembly.
This structure, however, will not be part of any of the 52 lawsuits around the world in which more than $40 billion is at stake between the governments. Deputy Juan Miguel Matheus criticized this idea, stating that the assets were safe because they were held in the custody of governments that support the Venezuelan people’s “democratic struggle”.
The move was strongly criticized by other deputies. They argued that, due to the international recognition, the interim government was their only guarantee of recovering these assets.
What do you think about the future for the 31 tons of Venezuelan gold held in the UK? Please leave a comment below.
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