RBI Increases Gold Reserves, Repatriates from Abroad

RBI Increases Gold Reserves, Repatriates from Abroad

Why in the News ?

The Reserve Bank of India (RBI) added 57.49 tonnes of gold to its foreign exchange reserves in FY 2025 and repatriated 38.64 tonnes from the Bank of England and BIS, boosting domestic holdings amid rising gold prices.

RBI Increases Gold Reserves, Repatriates from Abroad

About Growth in RBI’s Gold Reserves and Value:

  • RBI added 49 tonnes of gold to its forex reserves in FY 2025.
  • Total gold holdings reached 59 metric tonnes, up from 822.10 tonnes in March 2024.
  • The value of gold holdings rose by 41%, from $52.67 billion to $78.17 billion.
  • Share of gold in total forex reserves increased from 32% (Sept 2024) to 11.70% (March 2025).

Repatriation of Gold Holdings

  • RBI brought 64 tonnes of gold back to India from Bank of England and Bank for International Settlements (BIS).
  • This follows a two-year trend of repatriation totaling 60 tonnes.
  • As of March 2025, 99 tonnes are held domestically and 348.62 tonnes abroad, with 18.98 tonnes as gold deposits.

  • RBI and the Central Bank of Nigeria were the only central banks to repatriate gold in 2024.

Global Central Banks’ Gold Buying Trends

  • According to the World Gold Council (WGC), central banks bought a record 1,045 tonnes of gold in 2024.
  • This marks the third consecutive year of global central bank purchases exceeding 1,000 tonnes.
  • RBI bought gold every month in 2024 except December, totaling 73 tonnes, up from 16 tonnes in 2023.

  • Major global gold holders: Germany (3,351 tonnes), Italy (2,451), France (2,437), and China (2,292).

World Gold Council (WGC) – Key Highlights

●     Founded: 1987 by leading global gold mining companies.

●     Headquarters: London, United Kingdom.

●     Membership: 32 members with operations in over 45 countries.

●     Nature: Market development organization for the global gold industry.

●     Objective: Promote gold as a strategic asset and ensure a responsible, transparent, and accessible gold supply chain.

Roles and Functions:

●     Policy Advocacy: Collaborates with governments, international agencies, and policymakers to create gold-friendly regulations.

●     Market Infrastructure: Works to enhance transparent pricing, trading, and settlement of gold globally.

●     Data & Insights: Provides global data and research to position gold as a mainstream investment asset.

●     Central Bank Support: Assists central banks and sovereign wealth funds with gold reserve management and strategies.

———————–