Venezuela seeks UK-held gold to fund quake rebuilding as inflation hits 20%

Venezuelan authorities are shifting focus toward national reconstruction, with a key priority being the recovery of approximately $4 billion in gold reserves stored in the Bank of England's vaults. National Assembly chief Jorge Rodriguez announced the plan on Wednesday, as the country grapples with the aftermath of devastating twin earthquakes that struck in late June, killing more than 6,000 people.

The Bank of England has consistently refused to release the 31 metric tons of bullion, citing its failure to recognize the legitimacy of President Nicolas Maduro's government. The gold has been tied up in a prolonged legal dispute in British courts. Even after Maduro's capture by U.S. authorities in January and a formal request from acting President Delcy Rodriguez to King Charles, the reserves have remained frozen.

Rodriguez stated that the government and lawmakers have agreed to prioritize projects focused on rebuilding homes, restoring healthcare capacity, ensuring electricity availability, and clearing debris. To finance these efforts, he said they would "concentrate efforts to promote the recovery of Venezuela's international assets in the Bank of England."

Meanwhile, the country's central bank attributed the latest inflationary spike to the earthquake's disruption of goods distribution. Consumer prices rose 19.9% in July, up from 13.8% in June. The bank anticipates inflation will ease in August. Based on the July figure, annual inflation now stands at roughly 575.9%.