Venezuela's Gold Transfers to Switzerland Spark Controversy Over Fund Allocation
Venezuela's Gold Transfers to Switzerland Spark Controversy Over Fund Allocation,
In the early years of President Nicolas Maduro's rule, Venezuela sent approximately $5.2 billion worth of gold to Switzerland, aiming to prop up its struggling economy. However, questions have long lingered about whether these funds were truly utilized for the betterment of the country and its people.
According to customs data, between 2013 and 2016, Venezuela exported a total of 113 tons of gold to Switzerland, valued at around 41.4 billion Swiss francs ($5.2 billion). This gold originated from Venezuela's central bank reserves. As one of the world's major gold refining hubs, Switzerland is home to five large-scale refineries, suggesting that the Venezuelan gold was likely processed and certified there before being transported to other destinations.
Under U.S. sanctions, Venezuela's central bank sold off portions of its gold reserves to secure foreign currency. However, following the European Union's imposition of sanctions on Venezuela in 2017, which were subsequently adopted by Switzerland in early 2018, Venezuelan gold exports to Switzerland plummeted to zero and remained at that level until at least 2025.
Recent developments have seen Switzerland freezing assets belonging to Maduro and 36 associated individuals as of January 5. While the exact value and origin of these frozen assets remain undisclosed, speculation exists about potential links to the previously transferred gold reserves.
StoneX market analyst Rhona O'Connell notes that between 2012 and 2016, Venezuela's central bank sold large quantities of gold during a period of severe economic distress, with a significant portion flowing into Switzerland. She suggests that this gold may have remained within financial systems or been melted down into smaller bars for sale in Asia or other global markets.
Despite the absence of explicit bans on importing Venezuelan gold in EU and Swiss sanctions, O'Connell points out that the sharp decline in Venezuela's gold exports to Switzerland likely indicates that the central bank had few remaining gold reserves to sell. This raises further questions about the fate and utilization of these substantial financial resources initially intended to support Venezuela's economy.