RBI Shifts 100 Tonnes of Gold From UK To India: What Does It Mean?

[Spartan]

The Reserve Bank of India (RBI) has moved over 100 tonnes of gold from the UK to its domestic vaults. It marks the first time at least since early 1991 when the precious yellow metal at this scale has been added to the stock held locally, according to a Times of Indiareport.

The Indian central bank will also be bringing more similar quantity of gold to the country in the coming months, according to the report. The report, citing sources, said the transfer to India was for logistical reasons and for diversified storage.

[Spartan]

At the end of March 2024, the RBI held 822.10 tonnes of gold, of which 408.31 tonnes were held domestically.

Central banks globally have been increasing reserves held in gold, often seen as a hedge against currency volatility and geopolitical risks.

The RBI decided to move gold to India as the stock was building up overseas, TOI reported.

According to the latest note by the World Gold Council (WGC), the RBI bought 19 tonnes of gold in the first quarter of the current calendar year 2024 (Q1-CY24 / Q4-FY24). This dwarfs the 16 tonnes of gold it bought in the whole of 2023.

The RBI started buying gold in the calendar year 2018. Before that, it had purchased 200 tonnes in 2009 during the global financial crisis.

What Does It Mean?

Cost Saving: Storing gold domestically could save the RBI money on storage fees paid to foreign custodians like the Bank of England.

Signalling Confidence in the Indian Economy: Gold is seen as a safe haven asset, and keeping it domestically might signal the RBI’s confidence in the stability of the Indian economy.

Potential for More Gold Repatriation: The bringing back of gold to India highlights the RBI’s strategic thinking in managing its foreign exchange reserves.

Noted economist Sanjeev Sanyal, who is also the Prime Minister’s Economic Advisor, in a post on X said, “While no one was watching, RBI has shifted 100 tonnes of its gold reserves back to India from UK. Most countries keep their gold in the vaults of the Bank of England or some such location (and pay a fee for the privilege). India will now hold most of its gold in its own vaults. We have come a long way since we had to ship out gold overnight in 1991 in the midst of a crisis.”

[Spartan]

India’s Latest Gold, Forex Reserves

According to the latest data available till May 17, India’s gold reserves with the RBI currently stand at $57.195 billion.

During the week ended May 17, India recorded third consecutive weekly increase in its overall foreign exchange (forex) reserves.

India’s forex reserves jumped $4.549 billion to a new all-time high of $648.7 billion for the week ended May 17. For the week ended April 5, the reserves had hit an all time high of $648.562 billion following multiple weeks of increases.

The latest data till May 25 is due to be released today, May 31, 2024.

[Spartan]

1991 crisis decided Indias fate.. Chandrashekar chetylu ettwyadam and PVNR coming to power 

bangaram takattu petti appu tevadam

Rupee devaluation by 20% in 3 days ...

[2024]

just cost saving 

[Spartan]

Just now, 2024 said:

just cost saving 

along with that confidence in economy.. pakkanodu blackmail cheyakunda

like how Russian accounts are frozen

[2024]

3 minutes ago, Spartan said:

along with that confidence in economy.. pakkanodu blackmail cheyakunda

like how Russian accounts are frozen

At the end of March 2024, the RBI held 822.10 tonnes of gold, of which 408.31 tonnes were held domestically.

 

More than 50% gold reserves are out side India 

[Hitman]

When govt announced NO tax on gold imports (Only for Govt) , thought they are buying more from the market... today realized it was meant to import our gold from LONDON to INDIA. ...  

but something going on in Gold market... CHINA also accumulating like never before...  TRUMP vachi kaapaadalsinde USD ni... ee BIDEN gaadu inko term vaste... FASAK.. 

[JaiBalayyaaa]

At 21,000 Tonnes, Indian Households Possess More Gold Than World Bank's Reserves

[verrigadu]

21 hours ago, JaiBalayyaaa said:

At 21,000 Tonnes, Indian Households Possess More Gold Than World Bank's Reserves

Thats 180 Billion USD most of which can never be realized into a traded commodity. Which means it does help the countrys economy in anyway.

Gold obsession is a personal obsession. Not sure why this fuss about Gold

[Spartan]

22 hours ago, Hitman said:

When govt announced NO tax on gold imports (Only for Govt) , thought they are buying more from the market... today realized it was meant to import our gold from LONDON to INDIA. ...  

but something going on in Gold market... CHINA also accumulating like never before...  TRUMP vachi kaapaadalsinde USD ni... ee BIDEN gaadu inko term vaste... FASAK.. 

geompokitical uncertainity in 2025

[sarfaroshi2]

22 hours ago, Hitman said:

When govt announced NO tax on gold imports (Only for Govt) , thought they are buying more from the market... today realized it was meant to import our gold from LONDON to INDIA. ...  

but something going on in Gold market... CHINA also accumulating like never before...  TRUMP vachi kaapaadalsinde USD ni... ee BIDEN gaadu inko term vaste... FASAK.. 

China is accumulating for War against Taiwan…

I am afraid India is also preparing for the war against China !!!

[pakeer_saab]

24 minutes ago, Spartan said:

geompokitical uncertainity in 2025

minimizing the chances of amrikas using soverign assets if some country don't tow their line

almost all countries will take away their gold from BoE or Fed, smaller countries may not have leverage but big countries can start early and get them back

[Anta Assamey]

I think India accumulating so that it can deal with POK anukuntunanu...

[Spartan]

3 minutes ago, Anta Assamey said:

I think India accumulating so that it can deal with POK anukuntunanu...

not PoK but other situations

global markets are going to be assam in 2025q1