Venezuela targets $4 billion in Bank of England gold as inflation surges

Venezuelan authorities will prioritise reconstruction efforts following the country’s devastating June earthquakes and seek to recover gold reserves worth an estimated $4 billion held in the Bank of England’s underground vaults, National Assembly President Jorge Rodriguez said on Wednesday, August 12, as monthly inflation surged to nearly 20%.

The Bank of England has for years refused to release about 31 metric tons of Venezuelan gold held in its vaults, citing its refusal to recognise the legitimacy of President Nicolas Maduro’s government.

The bullion has been at the centre of a prolonged legal battle in British courts. It has remained frozen despite Maduro’s capture by the United States in January and a subsequent request by acting President Delcy Rodriguez to King Charles for the release of the reserves.

Venezuela was hit by two devastating earthquakes at the end of June that killed more than 6,000 people.

Rodriguez said the government and lawmakers had agreed to prioritise projects focused on rebuilding homes, restoring healthcare capacity, ensuring electricity supplies and clearing earthquake debris.

To help finance those efforts, authorities will, he said, "concentrate efforts to promote the recovery of Venezuela's international assets in the Bank of England."

The push to recover the gold comes as Venezuela faces renewed inflationary pressure. The country's central bank said the earthquakes contributed to a sharp acceleration in consumer prices, with monthly inflation reaching 19.9% in July, up from 13.8% in June, as the disaster disrupted the distribution of goods.

The central bank said it expected inflation to ease in August.

Based on central bank figures, Reuters calculations put Venezuela's year-on-year inflation rate at 575.9% in July.

By Tamilla Hasanova