RBI purchases lowest gold in last six years, know latest data and how much gold reserves – India TV Hindi

RBI started to mobilize the yellow metal in 2017 amid strong US dollar.- India TV Paisa
Image: File The RBI began mobilizing the yellow metal in 2017 amid a strong US dollar.

Gold purchases by the Reserve Bank of India (RBI) in 2023 are the lowest recorded in the last six years. The central bank, the RBI, started hoarding the yellow metal in 2017 amid a strong US dollar. The Reserve Bank added 0.04 million troy ounces of gold in December 2017, when gold reserves reached 17.94 million troy ounces. The central bank’s gold holdings rose by 0.52 million troy ounces (ozt) to 25.84 million ounces by the end of December 2023, from 25.32 million ounces a year earlier, the Economic Times reported.

Decrease in purchases

According to the report, amid rising gold prices, the RBI, like other central banks, has reduced purchases, helping it achieve mark-to-market valuations on historic stocks of the golden metal. The central bank started holding small amounts of gold in December 2017 as part of a strategy to diversify its foreign exchange reserves. According to the news, experts say that we have to know RBI’s policy on this. It is likely that potential allocations (for gold) will be proportional to dollar reserves and higher (gold) prices will mean lower tonnage.

Gold reserve of India

In its semi-annual report on foreign exchange reserves released in November, the Reserve Bank of India said that as of end-September 2023, it held 800.79 metric tonnes of gold (including 39.89 metric tonnes of gold reserves). While 388.06 MT of gold was held in safe custody abroad by the Bank of England and the Bank of International Settlements (BIS), 372.84 MT of gold was held locally. In value terms, the share of gold in total foreign exchange reserves declined from 7.81 percent at the end of March 2023 to around 7.37 percent at the end of September 2023. By the end of December 2023, the share of gold in reserves increased to 7.70%. According to the World Gold Council (WGC), this is considered to be more than China’s share of gold in reserves, which stood at 4 percent in December 2023.

The RBI and the People’s Bank of China accounted for one-third of the combined 1,037 metric tons of gold purchased by all the world’s central banks in 2023, the WGC said. It said that the average price of gold in 2023 was $1,940.54 per ounce, which is also a record. This is 8% more than the year 2022.

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