Venezuela: Shut Out

VENEZUELA

Shut Out

The British High Court rejected Venezuela’s demand to access $1 billion of its gold reserves stored at the Bank of England Thursday, dealing a blow to the embattled government of President Nicolas Maduro, the BBC reported.

The court ruled that Britain doesn’t recognize Maduro as the country’s president therefore Maduro cannot access the assets on the country’s behalf. Britain recognizes his rival, Juan Guaido, who declared himself Venezuela’s acting president last year.

Cash-strapped Venezuela had demanded the release of the gold reserves after the British and American governments imposed sanctions on Maduro’s government. Venezuela says it needs the gold to fund the fight against the coronavirus pandemic. Guaido, however, told the bank to deny access, saying it would fuel corruption.

Guaido is recognized by more than 50 countries as Venezuela’s president but Maduro still controls the country’s security forces and most institutions.

Despite its vast oil reserves, Venezuela is suffering a deep economic crisis following years of government mismanagement, corruption and international sanctions. Its foreign currency reserves are nearly depleted.

The country needs to import most of its necessities from abroad, prompting the government to sell off its gold reserves to allies, namely Russia and Iran.