Venezuela is unsuccessfully seeking to repatriate about 14 tons of gold bars worth almost half a billion dollars from the Bank of England, Reuters reports, citing sources.
Venezuela fears that gold could be caught up in sanctions. Caracas has not managed to bring the gold bars back for two months. The difficulties supposedly arise from impossibility of obtaining insurance, which is required for transportation of such a large amount of precious metal.
At the same time, the Bank of England insists on clarification what Venezuela plans to do with the gold reserves. The United States, for its part, is preparing sanctions to impede any Caracas operations with its gold. Donald Trump announced that last week.
Thus, Venezuela risks being left without gold. According to the IMF, the country's gold reserves are rapidly depleting. Today they are estimated to be worth little over 5 million ounces, although, not so long ago they made up 12 million. The country is forced to pay for imports with gold due to sanctions.
In recent years, the country has experienced a profound economic and social crisis, which is accompanied by hyperinflation, devaluation of the national currency, and a shortage of essential goods and medicines. Every day about 5 thousand citizens leave Venezuela and more than 2.6 million of its citizens are living abroad. The Venezuelan government denies that the country is facing the humanitarian crisis.
