- Saturday, November 23, 2024
This is one of the largest gold movements by the country since 1991 when a significant portion of the gold reserves was pledged and moved to address a foreign exchange crisis.
By: Vivek Mishra
INDIA has transferred 100 metric tonnes of its gold stored in the UK to domestic vaults in FY24, PTI reported quoting sources on Friday (31).
This is one of the largest gold movements by the country since 1991 when a significant portion of the gold reserves was pledged and moved to address a foreign exchange crisis.
The total gold holdings of the country increased by 27.46 metric tonnes in FY24, now standing at 822 metric tonnes, according to official data.
A considerable portion of this gold is stored abroad, including with the Bank of England.
The movement of 100 metric tonnes to India has increased the local gold reserves to over 408 metric tonnes, resulting in an almost even split between local and foreign holdings.
The central bank’s annual report for FY24, released on Thursday, shows that over 308 metric tonnes of gold are held in India as backing for notes issued, with another 100.28 tonnes held locally as a banking department asset. The report also states that 413.79 metric tonnes are held abroad.
Sources indicate that due to gold purchases in recent years, a decision was made to reduce the holdings abroad as part of standard review procedures. In 2009, India bought 200 tonnes of gold from the International Monetary Fund and has since continued to purchase gold from the secondary market as part of its foreign exchange asset diversification strategy.
Officials from the Ministry of Finance, the RBI, and other agencies managed the gold transfer with complete secrecy due to its high value, sources said. Currently, the gold held locally is stored in high-security vaults and facilities in Mumbai and Nagpur, they added.
