The Venezuelan government and opposition are close to finalizing an agreement to transfer the central bank's gold reserves, worth about $4bn, from the Bank of England to the Federal Reserve Bank of New York. Under the proposed deal, Delcy Rodríguez's interim government would gain legal control over the gold but would not be allowed to immediately sell the holdings. Instead, the gold could potentially be used as collateral for borrowing to fund spending, including reconstruction from June's devastating double earthquake.

The potential gold agreement represents one of the first concrete results from a US-backed negotiation process between the interim government and the opposition. If finalized, it would end a seven-year-long dispute that began in 2019, when the US, UK and other governments recognized opposition politician Juan Guaidó as the country's legitimate president. Since then, the opposition has claimed control over the bullion stored at the Bank of England, with the legal dispute reaching the UK Supreme Court.

The negotiations are taking place as the UK and Venezuela agreed to upgrade diplomatic relations, with the UK government restoring an ambassador to Caracas. A delegation of opposition politicians is currently in Caracas for discussions with a government delegation led by Jorge Rodríguez, head of the National Assembly. The government and opposition announced last month they were working together to unblock access to the 31 tonnes of gold stored in London, with the opposition insisting on controls to prevent misuse of the reserves.