Bank of England taken to Court by Venezuela which Demands Unblocking of its Gold deposited in the UK

MANY countries leave gold deposits with the Bank of England (BOE) so that they may be used as collateral against loans or sold if the country wishes to take advantage of rising gold prices.

As long ago as 2018, the Venezuelan government has been asking the BOE to sell part of its 31 tonnes of gold said to be worth in excess of €1 billion but has met a barrier of excuses.

The government in Venezuela is considered a socialist pariah by many countries, especially the USA which has raised numerous sanctions and refuses to recognise Nicholas Maduro as President.

These sanctions, coupled with a drop in the crude oil price have hit the Venezuelan economy badly and the government there says that they need to release funds in order to fight the Covid-19 pandemic.

Even though the Bank of England has since 1998 been an independent public organisation, supposedly with independence with regards to monetary policy, it remains under the ownership of the British government which does not recognise Maduro as the leader of the country.

In an effort to unblock the stalemate, it is reported that the Central Bank of Venezuela has issued a formal legal claim in a British court demanding the sale of part of its gold deposit with the proceeds being sent to the United Nations Development Programme.