The Reserve Bank of India (RBI) has moved more than 100 tonnes of gold from the UK to its domestic vaults. this is the first time since at least early 1991 that the rare yellow metal has been added to locally held stocks on this scale.
India’s central bank will also bring another similar amount of gold into the country in the coming months, according to the report. The report, citing sources, said the move to India was for logistical reasons and for diversified warehousing.
At the end of March 2024, the RBI held 822.10 tonnes of gold, including 408.31 tonnes in the domestic market.
Central banks around the world are increasing reserves held in gold, often seen as a hedge against currency volatility and geopolitical risks.
Also Read:
- PM Modi offers aid to Papua New Guinea as landslide buries 2,000.
- India’s net oil and gas import bill balloons to $12 billion
According to the latest World Gold Council (WGC) note, the RBI purchased 19 tonnes of gold in the first quarter of the current calendar year 2024 (Q1-CY24 / Q4-FY24). This exceeds the 16 tons of gold it bought in all of 2023.
The RBI started buying gold in calendar year 2018. It had previously bought 200 tonnes in 2009 during the global financial crisis.
Signaling confidence in the Indian economy: Gold is considered a safe haven and keeping it in the domestic market could signal the RBI’s confidence in the stability of the Indian economy.
Potential for further gold repatriation: The return of gold to India underlines the RBI’s strategic thinking in managing its foreign reserves.
