The Reserve Bank of India (RBI) has increased its gold reserves by 4.5% to 794.64 metric tonnes in the fiscal year that ended on March 31, 2023. During this time, the bank added 34.22 metric tonnes of gold, bringing its total gold holdings to 760.42 metric tonnes at the conclusion of the preceding fiscal year. For the last five to six years, the RBI has been increasing its gold reserves.
| Article and Schedule Quiz | Start Test! |
Gold Reserves Comprise 7.81% of Total Foreign Exchange Reserves:
As of March 31, 2023, the RBI’s gold reserves were valued at $45.2 billion, representing 7.81% of the country’s total foreign exchange reserves, up from 7% at the end of the previous fiscal year. The country’s foreign exchange reserves were valued at $578.449 billion as of March 31, 2023.
Gold Held Overseas and Domestically:
According to the RBI's half-yearly report on Management of Foreign Exchange Reserves-October 2022-March 2023, 437.22 metric tonnes of the RBI's total gold reserves are held overseas in safe custody with the Bank of England and the Bank of International Settlements, while 301.10 metric tonnes are held domestically. Gold deposits of 56.32 metric tonnes are also included in the total gold reserves.
Central Banks Buying Gold:
The RBI is not alone in its efforts to increase its gold reserves. Other central banks, including the Monetary Authority of Singapore (MAS), the People’s Bank of China (PBoC), and the Central Bank of the Republic of Turkey, have also been buying gold as part of the diversification of their foreign exchange reserves. According to a recent report by the World Gold Council (WGC), MAS was the largest single buyer of gold, adding 69 metric tonnes during January-March 2023. The report stated that central bank buying remains robust and that there is little to indicate that this will change in the short term.
