RBI's Strategic Gold Accumulation Amid Global Tensions
The Reserve Bank of India added 102 metric tonnes of gold to its domestic reserves from April to September, raising the total to 510.46 metric tonnes. Amid geopolitical tensions, this strategic move to relocate gold from the UK to India marks a significant shift since the 1991 economic crisis.
- Country:
- India
The Reserve Bank of India has strategically increased its domestic gold reserves by 102 metric tonnes during the April to September period, according to a Tuesday disclosure. This brings the total held locally to 510.46 metric tonnes as of September 30, up from just over 408 metric tonnes from March 31, 2024.
The central bank further disclosed an addition of 32 metric tonnes to its gold reserves over six months, culminating in a total of 854.73 metric tonnes. The move to shift gold from the UK to local vaults, notably in the financial capital and Nagpur, aligns with India's broader asset diversification strategy during increased global geopolitical tensions.
In 1991, amidst a foreign exchange crisis, India pledged a substantial part of its gold holdings. Now, in a move described as one of the largest since, a significant portion of India's gold reserves is domestically secured. As of the latest reports, 324.01 metric tonnes are being safely deposited with the Bank of England and BIS, while 20.26 metric tonnes are held in gold deposits. This shift reflects in the growing value of gold in the country's foreign exchange reserves, climbing to over 9% by the end of September 2024.
(With inputs from agencies.)
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