India’s Gold Reserves Reach 854.73 Metric Tonnes
As of the end of September 2024, India’s total gold reserves, managed by the Reserve Bank of India (RBI), stand at 854.73 metric tonnes. This information was revealed in the latest report by the RBI, which is released every six months to provide transparency on the country’s foreign exchange reserves.
Domestic and International Gold Holdings
Out of the total gold reserves, 510.46 metric tonnes are stored domestically within India. The remaining gold is held internationally, with 324.01 metric tonnes kept in safe custody with the Bank of England and the Bank for International Settlements (BIS). Additionally, 20.26 metric tonnes are maintained as gold deposits to support liquidity and financial security.
Gold’s Growing Importance
The report highlights a rise in the value of gold within India’s overall foreign exchange reserves. By the end of September 2024, gold accounted for 9.32% of the total reserves, up from 8.15% at the end of March 2024. This increase underscores gold’s growing role as a stable and secure reserve asset amid global economic fluctuations.
RBI’s Commitment to Transparency
The RBI’s half-yearly reports are crucial for maintaining high levels of disclosure regarding India’s financial stability and reserve management. By providing regular updates on foreign exchange reserves, including gold holdings, the RBI ensures transparency for stakeholders and the public, showcasing India’s economic resilience and reserve management strategies.
Doubts Revealed
Gold Reserves -: Gold reserves are the amount of gold held by a country’s central bank, like the Reserve Bank of India (RBI), to support its currency and economy. It’s like a savings account for the country, but in gold.
Metric Tonnes -: A metric tonne is a unit of weight equal to 1,000 kilograms. It’s a way to measure large amounts of heavy things, like gold.
RBI -: RBI stands for the Reserve Bank of India, which is the central bank of India. It manages the country’s money supply and financial policies.
Bank of England -: The Bank of England is the central bank of the United Kingdom. It helps manage the UK’s money and financial system, similar to what the RBI does for India.
BIS -: BIS stands for the Bank for International Settlements. It’s an international financial organization that helps central banks, like the RBI, work together and manage their financial systems.
Foreign Exchange Reserves -: Foreign exchange reserves are assets held by a country’s central bank in different currencies, like dollars or euros, to support its own currency and pay for international trade.
Reserve Asset -: A reserve asset is something valuable that a country keeps to support its economy, like gold or foreign currency. It’s like a backup plan for financial stability.
Transparency -: Transparency means being open and clear about what is happening. In this context, it means the RBI is sharing information about how it manages India’s gold and money reserves.