RBI's Gold Reserves Surge by 27.46 Metric Tonnes in FY24

The Reserve Bank of India (RBI) witnessed a notable expansion in its gold reserves during the fiscal year 2024, with an increase of 27.46 metric tonnes reported by the end of March

Post By : IJ News Service On 15 May 2024 2:54 PM

In FY24, the Reserve Bank of India saw its gold reserves grow by 27.46 metric tonnes, reaching a total of 822.10 metric tonnes by the end of March 2024, as reported in its "Half Yearly Report on Management of Foreign Exchange Reserves."

This increase elevated the proportion of gold within the total foreign exchange reserves to approximately 8.15%, up from about 7.81% at the close of March 2023, as measured in USD value.

The World Gold Council's latest report suggests a continuing trend of central banks acquiring gold, though some may be cautious given recent price increases, while opportunistic selling could arise due to the significant price surge observed this year.

Of the RBI's total gold holdings as of March 2024, 408.31 metric tonnes were held domestically, compared to 301.10 metric tonnes in the previous year. Additionally, 387.26 metric tonnes were securely stored with the Bank of England and the Bank for International Settlements, while 26.53 metric tonnes were held in gold deposits.

Regarding reserve adequacy, by December 2023, foreign exchange reserves covering imports increased to 11 months from 9.3 months. The ratio of short-term debt to reserves decreased from 23.0% in December 2022 to 20.3% by December 2023, while the ratio of volatile capital flows to reserves decreased from 72.7% to 70.4% during the same period.

As of March 2024, out of the total foreign currency assets of $570.95 billion, $468.99 billion was invested in securities, $62.17 billion was deposited with other central banks and the BIS, and $39.79 billion comprised deposits with commercial banks overseas.

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