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RBI increases gold reserves to 855 metric tonnes; forex reserves cover 11.2 months of imports

India’s total gold reserves held by the Reserve Bank of India (RBI) amount to 854.73 metric tonnes, according to the central bank’s latest report.

Released on Tuesday, the report indicates that a significant portion of these reserves, 510.46 metric tonnes, is stored domestically within India. The remaining gold reserves are held abroad, with 324.01 metric tonnes kept in safe custody at the Bank of England and the Bank for International Settlements (BIS).

Additionally, 20.26 metric tonnes of gold are maintained in the form of deposits to support liquidity and financial stability.

“As of the end of September 2024, the Reserve Bank held 854.73 metric tonnes of gold, with 510.46 metric tonnes held domestically,” the RBI stated.

The report also highlighted an increase in gold’s value within India’s overall foreign exchange reserves. By the end of September 2024, gold constituted 9.32 percent of total reserves, up from 8.15 percent at the end of March 2024.

This increase underscores the RBI’s emphasis on gold as a stable and secure asset amid global economic uncertainty.

Forex Reserves Cover 11.2 Months of Imports

According to the RBI, as of June 2024, India’s foreign exchange reserves covered 11.2 months of imports, down slightly from 11.3 months in March. This import cover serves as a key indicator of resilience against external economic shocks.

The report also highlighted an increase in short-term debt, which rose from 19.7% of reserves in March to 20.3% by June. Additionally, volatile capital flows, including short-term debt and portfolio inflows, grew slightly to 70.1% of reserves.

India’s International Investment Position (IIP) showed an increase in external assets by $108.4 billion and liabilities by $97.7 billion year-over-year, reflecting robust international financial activity. These updates highlight India’s external economic position and the resilience of its reserves amid global uncertainties.

This report, published every six months, offers reserve data at the end of March and September, aiming to enhance transparency in reserve management.

By sharing regular insights into foreign exchange reserves, including gold holdings, the RBI aims to provide clarity for stakeholders and the public on India’s economic resilience and reserve management strategies.

(ANI)

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Last Updated: 27th Dec 2024