Reserve Bank Of India / RBI bought 57.5 tonnes of gold in one year, what is its intention?

Reserve Bank Of India: The Reserve Bank of India (RBI) has taken the country's total gold reserves to 879.6 tonnes by buying 57.5 tonnes of gold so far at the beginning of the financial year 2024-25. This purchase is considered to be the second largest annual gold purchase in the last seven years. This move not only signals a change in India's economic strategy, but also shows the foresight to keep the Indian economy safe in the era of global instability.

Gold: Not just a metal, a strategic asset

Gold has traditionally been seen as a safe investment in times of crisis. This is the reason why along with common investors, now RBI is also making it an important part of its foreign exchange reserves. At the present time when the world is grappling with economic uncertainty and major currencies like the dollar are witnessing fluctuations, this move of RBI is being considered very strategic.

Why is gold purchase increasing?

This continuous gold purchase of RBI is being done keeping in mind the global economic scenario. Central banks around the world are now diversifying their foreign currency assets due to reasons such as the slowdown in the US and European economies, dollar volatility, and geopolitical tensions. India is also following this global trend and moving towards securing and balancing its reserves.

Gold purchase trend

RBI's gold purchase figures over the past few years make this strategy clear:

2021-22: 66 tonnes

2022-23: 35 tonnes

2023-24: 27 tonnes

2024-25 (till now): 57.5 tonnes

The volatility in the dollar after Donald Trump became US President again in November 2024 has further accelerated the trend towards gold. This active policy of RBI is not only increasing the diversity of foreign exchange reserves but also reducing the risk.

Where is India's gold kept?

Most of India's gold reserves are safely deposited in England and other foreign banks. This system is years old and is considered to be in line with global trading standards. In the first quarter of the year 2024, India was among the countries buying the most gold in the world, which shows the seriousness of this policy.

Weapon used in crisis

Financial experts believe that gold is a resource that plays a big role in repaying foreign debt, stabilizing the currency in times of currency crisis and maintaining the international balance of payments. Along with this, the increasing gold reserves can also help in strengthening the Indian rupee in the global currency market.

RBI policy, India's security

This aggressive gold policy of RBI is not just an immediate step, but is part of India's long-term economic strategy. Its objective is to keep the country safe from global financial instability, balance the currency reserves and establish India as a strong player on the global economic stage.