Venezuela Presses for UK-Held Gold Reserves as Inflation and Reconstruction Needs Rise
Venezuela's Efforts to Recover Gold Reserves Amid Economic Crisis
Aug 12 (Reuters) - Venezuelan authorities plan to focus on reconstruction efforts and recovering gold reserves worth an estimated $4 billion held in the Bank of England's underground vaults, National Assembly chief Jorge Rodriguez said on Wednesday, as monthly inflation surged to 20%.
Background: Gold Reserves Locked in the Bank of England
The Bank of England has long refused to release some 31 metric tons of Venezuelan gold held in its vaults because it did not recognize the legitimacy of President Nicolas Maduro's government.
Legal Disputes Over Gold Ownership
The bullion has been the subject of a long-running legal battle in British courts, and it has not been released despite Maduro's capture by the U.S. in January and a request by acting President Delcy Rodriguez to King Charles.
Impact of Natural Disasters and Economic Instability
Devastating Earthquakes and Humanitarian Needs
The South American nation was hit by devastating twin earthquakes at the end of June that killed more than 6,000 people.
Government Response and Reconstruction Plans
Rodriguez said the government and lawmakers had agreed to focus on projects aimed at rebuilding households, health capacities, electricity availability and clearing rubble, and to this end, "concentrate efforts to promote the recovery of Venezuela's international assets in the Bank of England."
Inflation Surges Amid Crisis
Venezuela's central bank said the earthquakes had contributed to inflation rising to 19.9% in July compared to 13.8% the prior month, as the disaster disrupted the distribution of goods. It said it expected inflation to decline in August.
Year-on-Year Inflation Data
With July's result, year-on-year inflation stands at 575.9%, according to Reuters calculations based on figures from the central bank.
(Reporting by Mayela Armas; Editing by Daina Beth Solomon, Sarah Morland and Jamie Freed)
