India increases gold reserves

According to Bussiness Standard, Governor of the Reserve Bank of India (BRI) Shaktikanta Das said that India has been increasing its gold reserves.

Indians choose to buy gold jewelry. Photo: Bussiness Today

Although no specific information was given on the amount of gold purchased, the RBI Governor gave official data showing that the value of India's gold reserves is increasing. According to official data, the value of gold in the country's foreign exchange reserves stood at $51.487 billion on March 22, up $6.287 billion from the value at the end of March 2023.

Indian media recently reported that the RBI bought 8.7 tonnes of gold in January 2023 alone, the highest in the last two years. According to the World Gold Council (WGC), the RBI’s gold holdings reached 812.3 tonnes at the end of January, up from 803.58 tonnes in December 2023. Gold prices have also seen a recovery in the past few months.

Governor Das asserted that RBI has been proactively focusing on building up foreign exchange reserves over the last four to five years to act as a buffer against any future risk of dollar outflows from India. Maintaining rupee stability is the RBI’s top priority.

Gold prices in India in the financial year 2023-2024 have increased by 11%, nearly double the country's retail inflation index of 5.7%. Compared to the international market, Indian gold prices have also grown significantly compared to the 10% growth of international gold prices on the Comex floor.

According to the India Research Department at the World Gold Council, the reason for the high gold price in India comes from the slow growth of the US economy, which has led to a decrease in the USD and US Treasury bond interest rates, along with geopolitical tensions in the past year.

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Source: https://www.sggp.org.vn/an-do-tang-du-tru-vang-post734069.html