Disputed Venezuelan Gold Worth $1.8 Billion in Bank of England Vaults Still Uncertain After Interim Government Dissolves

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The status of Venezuelan gold currently held by the Bank of England could fall into regulatory limbo after the dissolution of the interim government of Juan Guaido. The 31 tons of gold have been the subject of a dispute between current President Nicolas Maduro and Juan Guaido since 2019, when Guaido joined a parallel government.

Status of Venezuelan gold at the Bank of England uncertain

The status of the Venezuelan gold reserve kept in the vaults of the Bank of England in London is uncertain after the dissolution of the country’s interim government. The 31 tonnes of gold (1.02 million troy ounces), valued at more than $1.85 billion, have been fought over by the country’s two governments, one chaired by Nicolas Maduro, and the other by interim President Juan Guaido, who joined a caretaker government in 2019 after challenging the legality of the presidential poll.

While UK courts ruled in favor of Guaido in July, the dissolution of government executed in an elected session of the Legislative Assembly in 2015 casts doubt on the possible future of this gold and other offshore Venezuelan properties. , with some lawmakers saying that could open the doors for Maduro to have a valid claim on those.

MP Freddy Guevara hinted at this possibility during the session. He stated:

There was no prior consultation with the international community on the recognition of this reform. They clearly told us abroad that with this reform, the protection of foreign assets is not guaranteed. How is it possible to jump into the void?

72 deputies voted to dissolve the interim government, while 29 were against this measure, and eight deputies abstained.

Protective measures

As the interim government was dissolved, the parallel Legislative Assembly formed an Asset Protection and Administration Board, which would have the task of safeguarding and organizing Venezuelan properties and businesses abroad. The Board of Directors, which will be composed of five members, will have sufficient powers to meet these responsibilities, backed by the legality of the assembly.

However, this structure is new and does not feature in any of the 52 lawsuits around the world where there is more than $40 billion in dispute between the two governments. Deputy Juan Miguel Matheus criticized this idea, saying that these assets were not in danger because they were in the custody of governments that support the “democratic struggle” that the Venezuelan people are currently waging.

This, however, drew strong criticism from other deputies, who argued that the caretaker government was the only guarantee of recovering these assets due to the international recognition that Guaido enjoyed.

What do you think of the future of the 31 tonnes of Venezuelan gold held in the UK? Tell us in the comments section below.

Sergio Goschenko

Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, entering the cryptosphere when the price spike happened in December 2017. Having a background in computer engineering, living in Venezuela and impacted by the cryptocurrency boom at the social, it offers a different point of view. on the success of crypto and how it helps the unbanked and underserved.

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