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India's Gold Holdings Reach 760.42 Tonnes as RBI Acquires 16.58 Tonnes

Strategic Insights

— 1 min read

As of March 2022, India's gold holdings stand at 760.42 tonnes, with the Reserve Bank of India (RBI) adding 16.58 tonnes during the six months ended March 2022. This acquisition took place despite a decline in foreign exchange reserves, which decreased by $44.73 billion from $642.45 billion in September 2021 to $597.72 billion on April 29, 2022, according to Reserve Bank data. The RBI's gold acquisition is part of a larger trend of central banks increasing their gold reserves, with 21% of central banks intending to increase their gold reserves over the next 12 months, as stated in the 2021 Central Bank Gold Reserves (CBGR) survey.

Key Takeaways:

  • India's gold holdings have increased by 65.11 tonnes from 695.31 tonnes in March 2021 and by 142.18 tonnes in the last two years.
  • India now holds 760.42 tonnes of gold, making it the ninth-largest holder of gold reserves.
  • The value of RBI's gold holdings has increased by $5.162 billion to $42.55 billion as of March 2022.
  • Gold accounts for 7.01% of India's total foreign exchange reserves as of end-March 2022, up from 5.88% in September 2021.
  • RBI's gold acquisition happened at a time when foreign portfolio investors (FPIs) were exiting India and forex reserves declined.
  • The Bank of England remains the most popular storage location for gold, with 63% of respondents vaulting there, according to a World Gold Council (WGC) survey.
  • Domestic storage has also grown to 39% of respondents, up from previous years.

Statistics:

  • India's gold holdings: 760.42 tonnes.
  • RBI's gold acquisition: 16.58 tonnes.
  • Foreign exchange reserves: $642.45 billion (September 2021), $597.72 billion (April 29, 2022).
  • Decline in foreign exchange reserves: $44.73 billion.
  • RBI's gold holdings value: $42.55 billion (March 2022).
  • Increase in RBI's gold holdings value: $5.162 billion (6 months).
  • Gold's share in total reserves: 7.01% (end-March 2022).

Sources:

  • Reserve Bank of India (RBI) Report on Management of Foreign Exchange Reserves
  • World Gold Council (WGC)
  • 2021 Central Bank Gold Reserves (CBGR) survey
  • IE Online Media Services Pvt. Ltd.
  • Contify.com

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