Domestic gold reserves reach 60% of total as RBI reports significant increase

RBI boosts domestic gold reserves by 102 tonnes in April-September

As global gold prices soar amidst geopolitical tensions, the Reserve Bank of India (RBI) has reported that it held a total of 854.73 metric tonnes of gold as of September 30, with 510.46 metric tonnes stored domestically. This marks an increase of over 102 tonnes in domestic holdings from April to September, up from 408 tonnes at the end of March.

According to the RBI’s “Half Yearly Report on Management of Foreign Exchange Reserves: April-September 2024,” 324.01 metric tonnes of gold are held in safe custody with the Bank of England and the Bank for International Settlements (BIS), while an additional 20.26 metric tonnes are in the form of gold deposits.

In value terms, the share of gold in India’s total foreign exchange reserves rose from 8.15% at the end of March to approximately 9.32% by the end of September. During this six-month period, the total foreign reserves increased from $646.42 billion to $705.78 billion.

The RBI data further indicated that foreign exchange reserves saw a nominal increase of $5.6 billion in the April-June 2024 quarter, compared to a larger increase of $16.6 billion during the same period the previous year.

Notably, the net International Investment Position (IIP) as of June 2024 was negative at $368.3 billion, reflecting a decrease in the negative gap compared to $379.0 billion a year prior.

The RBI also highlighted that foreign currency assets (FCAs), which include multi-currency assets held in diversified portfolios, totaled $617.07 billion at the end of September, with $515.30 billion invested in securities and $60.11 billion deposited with other central banks and BIS.

This surge in gold reserves underscores India’s growing strategic asset management amid fluctuating global economic conditions.

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