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Reserve Bank’s gold reserves rose 4.5% to 794.64 tonnes in 2022-23

Reserve Bank’s gold reserves rose 4.5% to 794.64 tonnes in 2022-23:

The Reserve Bank of India (RBI) has increased its gold reserves by 4.5% to 794.64 metric tonnes in the fiscal year that ended on March 31, 2023. The bank added 34.22 metric tonnes of gold during this period, which brought its total gold reserves up from 760.42 metric tonnes at the end of the previous fiscal year. The RBI has been building up its gold reserves for the last five to six years.

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Gold Reserves Comprise 7.81% of Total Foreign Exchange Reserves:

As of March 31, 2023, the RBI’s gold reserves were valued at $45.2 billion, representing 7.81% of the country’s total foreign exchange reserves, up from 7% at the end of the previous fiscal year. The country’s foreign exchange reserves were valued at $578.449 billion as of March 31, 2023.

Gold Held Overseas and Domestically:

Of the RBI’s total gold reserves, 437.22 metric tonnes are held overseas in safe custody with the Bank of England and the Bank of International Settlements, while 301.10 metric tonnes are held domestically, according to the RBI’s half-yearly report on Management of Foreign Exchange Reserves-October 2022-March 2023. Gold deposits of 56.32 metric tonnes are also included in the total gold reserves.

Central Banks Buying Gold:

The RBI is not alone in its efforts to increase its gold reserves. Other central banks, including the Monetary Authority of Singapore (MAS), the People’s Bank of China (PBoC), and the Central Bank of the Republic of Turkey, have also been buying gold as part of the diversification of their foreign exchange reserves. According to a recent report by the World Gold Council (WGC), MAS was the largest single buyer of gold, adding 69 metric tonnes during January-March 2023. The report stated that central bank buying remains robust and that there is little to indicate that this will change in the short term.

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Piyush Shukla