RBI's Gold Reserves Surge to 7% of Foreign Exchange Reserves

Strategic Insights -

The Reserve Bank of India's affinity to gold has grown significantly, with the share of gold in the total foreign exchange reserves rising to 7% at the end of March. This marks an increase from about 5.88% six months prior. The central bank's gold reserves currently stand at 760.42 metric tonnes, with 453.52 metric tonnes held overseas and 295.82 metric tonnes held domestically. The total foreign exchange reserves, worth $607.309 billion, are sufficient to cover around 13 months of imports, although this has depleted from the December level.

Key Takeaways:

  • The RBI's gold reserves have increased to 7% of the total foreign exchange reserves, indicating a growing affinity to gold.
  • The RBI held 760.42 metric tonnes of gold at the end of March, including 11.08 metric tonnes of gold deposits.
  • 453.52 metric tonnes of gold is held overseas with the Bank of England and the Bank of International Settlements (BIS), while 295.82 metric tonnes is held domestically.
  • The total foreign exchange reserves were at $607.309 billion at the end of March.
  • India's foreign exchange reserves are sufficient to cover around 13 months of imports, but this has depleted from the December level.
  • The RBI's foreign currency assets, worth $540.72 billion, were invested in securities, deposits with other central banks, and deposits with commercial banks overseas.
  • The RBI's gold reserves, including deposits, are valued at approximately $128 billion, based on the current gold price of around $170 per gram.

Statistics:

  • The RBI's gold reserves are valued at approximately $128 billion, based on the current gold price of around $170 per gram.
  • The share of gold in the total foreign exchange reserves rose to 7% at the end of March from about 5.88% six months prior.
  • The RBI held 760.42 metric tonnes of gold, including 11.08 metric tonnes of gold deposits, at the end of March.
  • 453.52 metric tonnes of gold is held overseas with the Bank of England and the Bank of International Settlements (BIS), while 295.82 metric tonnes is held domestically.
  • The total foreign exchange reserves were at $607.309 billion at the end of March, covering around 13 months of imports.

Sources:

  • Reserve Bank of India's half-yearly report on management of forex reserves.
  • Times of India article "RBI's gold reserves surge to 7% of foreign exchange reserves" (no date specified in the source material)