RBI Moves 100 Tonnes Of Gold From UK Vaults For First Time Since 1991

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New Delhi: The Reserve Bank of India (RBI) has shifted over 100 tonnes of gold from the UK to its vaults in India, Business Today reported, quoting sources. This marks the first such transfer since 1991. Currently, more than half of the central bank’s gold reserves are kept overseas with the Bank of England and the Bank of International Settlements while a third is stored within India. This move will help the RBI save on storage costs paid to the Bank of England.

According to RBI’s annual data the central bank held 822.10 tonnes of gold as part of its foreign exchange reserves as of March 31, 2024. There is an increase from the 794.63 tonnes held during the same period last year. ()

The government in 1991 pledged 46.91 tonnes of gold with the Bank of England and the Bank of Japan to raise 4 million dollars between July 4 and 19. Around 15 years ago The RBI purchased 200 tonnes of gold from the International Monetary Fund (IMF). ()

The government acquired 200 tonnes of gold valued at 6.7 billion dollars in 2009 as part of an asset diversification strategy. In recent years RBI has consistently increased its gold reserves through purchases.

The share of gold in India’s foreign exchange reserves rose from 7.75 percent at the end of December 2023 to 8.7 percent as of April 2024. Gold is stored in vaults located in the RBI’s building on Mumbai’s Mint Road as well as in Nagpur. According to a report by the World Gold Council, global central banks possess about 17% percent of all gold ever mined with reserves totaling 36,699 metric tons (MT) as of the end of 2023.