Venezuela Nears Deal to Move Gold Reserves From the Bank of England to the New York Fed

Media reports, citing people familiar with the matter, said Venezuela's government and the opposition are close to reaching an agreement to transfer about $4 billion in gold reserves from the Bank of England to the New York Federal Reserve Bank. According to Sina Finance, under the terms being discussed, the gold could be used as collateral for government borrowing to fund fiscal spending. The government would not be able to sell the gold immediately, but it would have legal control over it. The Bank of England said it cannot carry out the relevant operation unless a British court rules clearly on the legal ownership of the account. The British Foreign Office, the Venezuelan government and the opposition all declined to comment.