In battle over US$2 billion in gold, Britain backs Juan Guaidó as Venezuela’s president

The British government sought on Monday to prevent Venezuela’s Nicolas Maduro from gaining access to nearly US$2 billion of gold held by the Bank of England as the UK Supreme Court started hearing a case that hinges on the question of who should be considered the Latin American nation’s president.

Britain told the court that its recognition of opposition leader Juan Guaidó as president is clear and long-standing, and therefore he is the person authorised to decide how the gold held by Britain’s central bank should be used. The government’s statement came after a lower court said the UK’s recognition of Guaido was “ambiguous.”

“The UK government has the right to decide who to recognise as the legitimate head of a foreign state,” the Foreign, Commonwealth and Development Office said in a statement. “The UK recognises Juan Guaidó as president of Venezuela and consequentially he is the only individual recognised to have the authority to act on behalf of Venezuela as its head of state.”

Maduro has demanded access to the gold to help his cash-starved nation fight the coronavirus pandemic. But the Bank of England has refused to hand it over, citing the British government’s recognition of Guaido.

Guaido has sought to preserve the gold stash at the Bank of England to keep it out of the hands of the Maduro government, which it contends is illegitimate and corrupt.

Guaido, who was the leader of Venezuela’s National Assembly, challenged Maduro’s claim to the presidency, arguing that his 2018 election was rigged and invalid. Guaido says he is the country’s interim president under provisions of the constitution that allow the head of the legislature to take power until free elections can be held.