Increase in Gold Reserves
MUMBAI (Reuters) – The total quantum of gold being held by India’s central bank in its foreign exchange reserves rose by the end of September, while the proportion of the yellow metal held domestically also jumped sharply, according to a half-year forex reserves management report on Tuesday.
As of end-September, the Reserve Bank of India (RBI) held 854.73 metric tonnes of gold, compared to 822.10 metric tonnes at the end of March.
The proportion of gold held domestically rose to 510.46 metric tonnes as of Sept. 30, against 408.31 metric tonnes at the end of the previous quarter, the RBI said.
“In value terms (USD), the share of gold in the total foreign exchange reserves increased from 8.15% as at end-March 2024 to about 9.32% as at end-September 2024,” the report said.
Insight:
By increasing its gold reserves, the Reserve Bank of India is enhancing the stability and reliability of its foreign exchange portfolio. Gold is often seen as a safe-haven asset, and by holding more of it, the RBI is mitigating risks associated with currency fluctuations and economic uncertainties.
Implications for Economic Stability
(Reporting by Swati Bhat; Editing by Sonia Cheema)
