Venezuelan Central Bank Fighting in Court for $ 1 Billion Gold Reserves Stored in London

Venezuelan Central Bank Fighting in Court for $ 1 Billion Gold Reserves Stored in London

Venezuela Central Bank Fights in Court for $ 1 Billion Gold Reserves Stored in London

LONDON (Reuters) – Venezuela's central bank filed a court appeal in London on Tuesday over the country's over $ 1 billion in gold reserves housed in the Bank of England's underground vaults.

The Central Bank of Venezuela, controlled by the government of Nicolas Maduro, is challenging a July High Court ruling in London that the British government's decision to “categorically” recognize Venezuelan opposition leader Juan Guaido as interim president gives him control over gold.

Lawyers representing the Central Bank of Venezuela say the proceeds from the sale of gold from London vaults, which account for about 15% of Venezuela's foreign exchange reserves, will be used to combat the effects of the pandemic and strengthen the health system, devastated by a severe economic crisis that has lasted six years in the country.

During the trial in May, Juan Guaido asked the Bank of England to deny Maduro access to the gold reserves, because, he said, he wanted to spend them on payments to his foreign allies.

The hearings are expected to last three days. This will be the first of its kind in the London Court of Appeal.

(Mark Jones, translated by Elizaveta Zhuravleva. Editor Anna Kozlova)

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