Venezuela to Sell 15 Tons of Gold to UAE in Return for Euros

The U.S., which is backing an attempt by the opposition to force Maduro to step down, warned bankers and traders not to deal in Venezuelan gold

Venezuelan President Nicolas Maduro gives a press conference at Miraflores presidential palace in Caracas, Venezuela, January 25, 2019.
Ariana Cubillos,AP

Venezuela will sell 15 tons of gold from central bank vaults to the United Arab Emirates in coming days in return for euros in cash, a senior official with knowledge of the plan said, in an effort by the troubled OPEC member to stay solvent.

The sale this year of gold reserves that back the bolivar currency began with a shipment on January 26 of 3 tons, the official said, and follows the export last year of $900 million of mostly unrefined gold to Turkey.

In total, the plan is to sell 29 tons of gold held in Caracas by February, the source said, requesting anonymity in order to speak freely. Venezuela had reserves of 132 tons between the central bank's vaults and the Bank of England at the end of November, according to central bank data.

The government of President Nicolas Maduro resorted to selling off gold after falling oil production, the country's wider economic collapse and mounting U.S. sanctions hit public income and made it hard for the country to access credit.

The United States, which is backing an attempt by the opposition to force Maduro to step down and call new elections, warned bankers and traders on Wednesday not to deal in Venezuelan gold.

Republican U.S. Senator Marco Rubio sent a tweet to the United Arab Emirates embassy in Washington on Thursday warning that anybody transporting Venezuelan gold would be subject to U.S. sanctions.

Neither the embassy of the United Arab Emirates in Colombia, which covers Venezuela, or the central bank responded immediately to requests for comment.