RBI lifts domestically-held gold by 102 metric tonnes in H1FY25, gold reserves average volume at 854 MT | Mint

The Reserve Bank of India (RBI) increased its domestically-held gold reserves by 102 metric tonnes in the first half of FY25, bringing the total gold reserves to 854 metric tonnes. This move is part of RBI’s strategy to diversify its foreign exchange reserves and hedge against global economic uncertainties. The RBI’s gold reserves are now evenly distributed, with significant portions held both domestically and abroad. The central bank’s decision to increase gold holdings reflects a broader trend among central banks to reduce reliance on dollar assets. The RBI’s gold purchases have been driven by declining confidence in dollar assets and the need to safeguard against inflation and currency volatility. The increase in gold reserves is also seen as a measure to enhance financial stability and strengthen the country’s economic resilience. The RBI’s gold holdings are kept in safe custody with the Bank of England and the Bank for International Settlements.