image source, Good pictures
In 2019, the Bank of England froze access to the Venezuelan government’s gold reserves, sparking protests among Maduro supporters.
The UK High Court on Friday rejected the most recent claim by Nicolás Maduro’s government that Venezuela has gold reserves of more than US$1 billion, stored in underground vaults at the Bank of England.
Venezuela’s gold reserves are the subject of a struggle for control between President Maduro and opposition leader Juan Guaido, who is recognized as the Latin American country’s interim president by the United Kingdom and other countries in the West.
Both Maduro and Guaidó have been appointed separately Different boards for the Central Bank of Venezuela (BCV). And both have issued conflicting directives on management of gold reserves.
Venezuela’s Supreme Court of Justice (TSJ) ruled, along with the official trend, to reduce Guaidó’s involvement in gold and require the reserves to be transferred from London, but British judge Sarah Cockerill rejected that argument.
Cockerill said there was “clear evidence” that the TSJ was stacked with judges who supported Maduro and that their decisions were not recognized under British law.
The ruling represents a victory for the opposition, but the judge ruled that the United Kingdom’s visit to Gaido was valid. Gakaril did not authorize the opposite party to access the reserves. will be determined in another hearing.
image source, Ketty
Venezuela’s central bank has two boards, one appointed by Maduro and the other by Quito.
However, Juan Guaido celebrated the British court’s ruling on his website as “another international victory for democracy and freedom”.
“This decision represents another step in the process of protecting Venezuela’s international gold reserves and safeguarding them for the Venezuelan people and their future,” the Venezuelan opposition leader said.
After learning of the decision, the legal representation of the Maduro government announced that it would continue its efforts to access the reserves.
“This is an unfortunate ruling that is based on a narrow legal issue on the recognition of foreign judges,” said Sarosh Jayvala, representing Venezuela’s central bank.
“BVC is considering appeal”The lawyer added.
President Maduro’s legal team is seeking the government to sell part of the 31 tons of gold to finance the Covid pandemic and bolster its deteriorating health system.
Guaidó, for his part, has accused the Maduro government of paying its allies who have helped it deal with severe cash-flow problems after years of crisis, which the government’s lawyers deny.
image source, Good pictures
Juan Quito assures that the Maduro government wants gold resources to pay the debts it has with its allies.
Access to gold has been disabled since 2019After several countries, led by Washington and London, endorsed Guido and declared him interim president.
The opposition leader soon asked the Bank of England to block access to the Maduro government’s gold reserves.
The BVC sued the Bank of England to regain control, arguing that the funds were needed to cover the costs of anti-pandemic measures.
According to legal experts, the case — one country’s supreme court interpreting another country’s constitution — is unprecedented.
Sarosh Jaiwala, while endorsing the TSJ’s rulings that banned Quito’s actions, considered it “unfortunate” that the magistrate was constrained by “technical regulations” created “in different contexts”.
Venezuela, like many other countries, has stored gold in foreign banks.
For decades, Venezuela keeps its central bank reserves of gold in foreign banksA strategy followed by many countries, both in Europe and America.
Large countries have the ability to protect their own reserves, so keeping reserves elsewhere is a common strategy adopted by smaller countries for defense and security.
In 2011, then President Hugo Chavez Around 160 tonnes of gold was sent back He cited a move from US and European Union banks to the central bank in Caracas to keep physical control over his country’s assets.
As economist and opposition deputy Jose Guevara told BBC Mundo in August 2021, “About 90% of the gold held by Venezuela abroad is brought in and placed in the BCV’s vaults.” Most of Venezuela’s gold reserves are in Caracas, he said.
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