Venezuela looks to UK-held gold reserves for reconstruction as inflation surges

Aug 12 - Venezuelan authorities plan to focus on reconstruction efforts and recovering gold reserves worth an estimated $4 billion held in the Bank of England's underground vaults, National Assembly chief Jorge Rodriguez said on Wednesday, as monthly inflation surged to 20%.

The Bank of England has long refused to release some 31 metric tons of Venezuelan gold held in its vaults because it did not recognize the legitimacy of President Nicolas Maduro's government.

The bullion has been the subject of a long-running legal battle in British courts, and it has not been released despite Maduro's capture by the U.S. in January and a request by acting President Delcy Rodriguez to King Charles.

The South American nation was hit by devastating twin earthquakes at the end of June that killed more than 6,000 people.

Rodriguez said the government and lawmakers had agreed to focus on projects aimed at rebuilding households, health capacities, electricity availability and clearing rubble, and to this end, "concentrate efforts to promote the recovery of Venezuela's international assets in the Bank of England."

Venezuela's central bank said the earthquakes had contributed to inflation rising to 19.9% in July compared to 13.8% the prior month, as the disaster disrupted the distribution of goods. It said it expected inflation to decline in August.

With July's result, year-on-year inflation stands at 575.9%, according to Reuters calculations based on figures from the central bank. REUTERS