The country’s gold reserves increased eightfold in a year. The foreign exchange reserves also hit a record high of $645.6 billion.
Stating that India’s foreign exchange reserves have reached an all-time high of $645.6 billion, RBI Governor Shaktikanta Das said India is also increasing gold reserves as part of foreign exchange deployment.
Speaking to reporters after the policy review meeting, Das explained that the total foreign exchange reserves reached an all-time high of $645.6 billion as of March 29, 2024, the details of which will be made available with the weekly statistical supplement.
The central bank has consciously focused on increasing foreign exchange reserves for the last four years. The aim was to create a safety net against any risks that may arise if the dollar exits India in future. RBI Governor Shaktikanta Das also said that the RBI’s priority is to keep the value of the rupee stable.
“We are expanding gold reserves as part of reserve deployment,” Das said. However, the governor did not say anything in detail about the quantity of gold purchased. However, it pointed to official figures showing an increase in the value of gold reserves. According to official data, the value of gold in foreign exchange reserves at the end of March 2022 was $6.287 billion, which has increased more than eight times from the value of $51.487 billion at the end of March 2023.
The RBI bought 8.7 metric tonnes of gold internationally in January, the highest level in two years. According to the World Gold Council, central bank gold holdings reached 812.3 metric tonnes at the end of January, up from 803.58 metric tonnes in the previous month. Gold prices have also seen a boom over the past few months due to significant gold purchases by all the central banks around the world.
