Gold holds up incremental value of forex reserves
Reserve Bank of India’s gold purchases has helped the central bank to hold up foreign exchange reserves amidst a huge pullout by foreign portfolio investors that saw reserves contracting by $47 billion in five weeks.
While the value of foreign currency assets dipped $1.1 billion on an incremental basis since the beginning of the fiscal 2024-25 upto November 15, value of gold in reserves rose $13 billion in the same period and help shore up overall foreign exchange reserves by $11 billion, the latest Reserve Bank of India data shows. Reserves including gold, foreign currency assets and SDR are now at $ 658 billion.
The central bank added 44.76 tonnes to its stock of gold between March 29 and October 25 this year, ramping up gold stocks from 822.09 tonnes to 866.65 tonnes during the period according to the latest Reserve Bank of India data.
Gold prices rose 23 percent during the period according to the World Gold Council, while RBI’s value of gold in reserves rose 31 percent. The gold body says the demand from central banks is triggering a price rally in gold, which in turn helps them with valuation gains. Central banks have started looking for safety of their assets amidst an uncertain geopolitical environment.
“We are building up gold reserves, the data is released from time-to-time,” said RBI governor Shaktikanta Das at the post policy media conference on April 5. “All aspects while building up the reserves are assessed and then we make a decision.”
Web Development
JavaScript Essentials: Unlock AI-Driven
