The Reserve Bank Of India has shifted 100 tonne of its gold reserves back to India from UK, according to a news media report. The central bank holds more than half of its gold reserves in safe custody with the Bank of England and the Bank for International Settlements, while approximately a third is stored domestically, Times of India reported, adding that the move will reduce storage costs incurred from the Bank of England.
In 1991, to address the balance of payments crisis, the Chandra Shekhar government pledged gold reserves. Between July 4 and 18 of that year, the RBI pledged 46.91 tonne of gold with the Bank of England and the Bank of Japan, securing $400 million in return.
"India will now hold most of its gold in its own vaults," Economist Sanjeev Sanyal posted on social media platform X, formerly known as Twitter.
"While no one was watching, RBI has shifted 100 tonne of its gold reserves back to India from UK. Most countries keep their gold in the vaults of the Bank of England or some such location (and pay a fee for the privilege). India will now hold most of its gold in its own vaults. We have come a long way since we had to ship out gold overnight in 1991 in the midst of a crisis," the post said.
While no one was watching, RBI has shifted 100 tonnes of its gold reserves back to India from UK. Most countries keep their gold in the vaults of the Bank of England or some such location (and pay a fee for the privilege). India will now hold most of its gold in its own vaults.…
May 31, 2024As of April 26, the central bank held approximately 827.7 tonne of gold in its foreign exchange kitty, higher than 803.6 tonne at the end of December, according to the RBI data.
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