Venezuela seeks Bank of England gold to fund earthquake recovery

Venezuelan authorities plan to focus on reconstruction efforts and recovering around 31 metric tons of gold, worth an estimated $4 billion, held in the Bank of England's underground vaults, National Assembly Chief Jorge Rodríguez said, as monthly inflation surged to 20 per cent.

The gold has been at the centre of a long-running legal dispute in British courts. The Bank of England has refused to release the bullion because it did not recognise the legitimacy of former President Nicolás Maduro's government.

It has remained frozen despite Maduro's capture by the U.S. in January and a request by acting President Delcy Rodríguez to King Charles.

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Gold sought for reconstruction

Jorge Rodríguez said the government and lawmakers had agreed to prioritise reconstruction projects focused on housing, healthcare, electricity and debris removal, with the recovery of Venezuela's international assets forming part of those efforts.

The plan comes after devastating twin earthquakes struck the country at the end of June, killing more than 6,000 people and causing widespread damage.

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Inflation surges after earthquakes

Venezuela's central bank said the disaster contributed to a sharp rise in inflation as disruptions affected the distribution of goods. Monthly inflation reached 19.9 per cent in July, up from 13.8 per cent in June, while year-on-year inflation stood at 575.9 per cent, according to Reuters calculations based on central bank data.

The bank expects inflation to ease in August.

Government and opposition reach deal

At the same press conference, Venezuela's ruling Chavistas and opposition agreed to replace all judges on the Supreme Court of Justice (TSJ), marking one of the first agreements reached through U.S.-backed dialogue aimed at facilitating a political transition.

Opposition delegation head Dinorah Figuera said implementation would begin in August. 

"The timeline for implementing the agreements will begin this August with official announcements and concrete actions, under a continuous working mechanism that ensures strict compliance with each commitment," Figuera noted.

Jorge Rodríguez said both sides had also agreed to establish mechanisms for transparency, traceability and auditing to ensure the recovered assets are used efficiently for the benefit of those affected by the earthquakes.

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Venezuela bank of England Gold Earthquake Reconstruction Political Transition Funding