RBI boosts gold reserves in preparation for global uncertainty

In a strategic move to safeguard against global economic uncertainties, the Reserve Bank of India (RBI) has significantly increased its gold reserves.

During the March quarter, the Reserve Bank of India (RBI) purchased approximately 10 tonnes of gold, ranking it among the top five buyers of gold during that time.

This recent acquisition has increased RBI's overall gold reserves to nearly 800 tonnes.

From April to December 2022, RBI acquired around 27 tonnes of gold, this move aligns with the central bank's objective of diversifying its foreign exchange reserves and reducing its reliance on traditional reserve currencies like the US dollar.

The RBI's gold reserves now stand at a record high, marking a significant shift in its asset allocation strategy. This move also brings the RBI more in line with other major central banks, such as those in Russia and China, which have similarly increased their gold reserves in recent times.