un still has a hold on them

Exclusive: Venezuela asks Bank of England to sell its gold to U.N. for coronavirus relief - sources

Corina Pons, Mayela Armas

5 Min Read

CARACAS (Reuters) - Venezuela is asking the Bank of England to sell part of the South American nation’s gold reserves held in its coffers and send the proceeds to the United Nations to help with the country’s coronavirus-fighting efforts, according to two sources with knowledge of the situation.

FILE PHOTO: Medical workers take blood samples from a man for a coronavirus disease (COVID-19) rapid test at a medical facility due to the COVID-19 outbreak in Caracas, Venezuela April 15, 2020. Picture taken April 15, 2020. REUTERS/Manaure Quintero

Venezuela for decades stored gold that makes up part of its central bank reserves in the vaults of foreign financial institutions including the Bank of England, which provides gold custodian services to many developing countries.

But the Bank of England has since 2018 refused to transfer the 31 tonnes of gold to the government of President Nicolas Maduro, whom Great Britain has refused to recognize as the country’s legitimate leader after his disputed 2018 re-election.

The effort signals that Maduro is desperately seeking financial resources around the world as the country’s economy struggles under low oil prices, crippling U.S. sanctions and a paralyzing coronavirus quarantine.

Consulted about the issue, the United Nations Development Programme said it “has been approached recently to explore mechanisms to use existing resources held by the Central Bank of Venezuela in financial institutions outside the country to fund the ongoing efforts to address the … the COVID-19 pandemic.”

It was not immediately evident how much gold Venezuela was asking the Bank of England to sell. At current market prices, Venezuelan gold on deposit at the Bank of England would be worth around $1.7 billion.

Venezuela’s information ministry and central bank did not respond to requests for comment.

The Bank of England said it does not comment on individual customer relationships.

Former U.N. aid chief Jan Egeland on Tuesday called for sanctions on Venezuela and other countries to be lifted and urged the release of Venezuelan funds in banks in Britain, the United States and Portugal.

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https://www.reuters.com/article/us-health-coronavirus-venezuela-gold-exc/exclusive-venezuela-asks-bank-of-england-to-sell-its-gold-to-u-n-for-coronavirus-relief-sources-idUSKBN22B30X