Venezuela Seeks £64 Trillion in Gold from Bank of England for Reconstruction

The Venezuelan government plans to rely on gold reserves stored at the Bank of England to help finance the country’s reconstruction efforts. The plan emerges as inflation surges and the nation continues to deal with the aftermath of a devastating earthquake.

Head of Venezuela’s National Assembly Jorge Rodriguez stated the government will prioritise rebuilding homes, healthcare facilities, electricity supplies, and clearing debris. To support these efforts, the government will also seek to recover its international assets held at the Bank of England.

The reserves consist of approximately 31 tonnes of gold, with an estimated value of US$4 billion. The Bank of England has for years refused to release part of Venezuela’s gold, citing its non-recognition of President Nicolas Maduro’s administration as legitimate. The gold reserves have been the subject of a lengthy legal dispute in British courts and remain frozen despite Maduro’s arrest by the United States in January and a request for assistance from King Charles by acting President Delcy Rodriguez.

Venezuela’s central bank recorded monthly inflation of 19.9% in July, a sharp increase from 13.8% the previous month. The central bank noted the earthquake contributed to rising prices by disrupting goods distribution, though it expects inflation to decline in August. According to Reuters calculations based on central bank data, annual inflation reached 575.9% in July, further complicating the government’s efforts to recover the economy, especially after two major consecutive earthquakes in late June killed more than 6,000 people. Rodriguez said the government and parliament have agreed to focus attention on reconstruction projects to restore the people’s livelihoods.