India has moved 100 metric tons of gold from the UK to domestic vaults, balancing its overall gold holdings between local and foreign storage.
India has successfully transferred 100 metric tons of its gold from storage in the UK to domestic vaults during the fiscal year 2023-24 (FY24). This significant movement of gold is the largest undertaken by the country since 1991, a year marked by an economic crisis that required pledging a substantial portion of its gold reserves abroad.
As of FY24, India's total gold holdings have increased by 27.46 metric tons, bringing the overall reserves to 822 metric tons. Of this, more than 408 metric tons are now stored domestically, with the remaining 413.79 metric tons held abroad, primarily with the Bank of England.
The decision to repatriate a portion of the gold reserves was part of a standard review procedure. Over the past few years, India has been increasing its gold purchases from the secondary market as a part of its strategy to diversify foreign exchange assets. Notably, in 2009, India acquired 200 metric tons of gold from the International Monetary Fund (IMF).
According to the Reserve Bank of India's (RBI) annual report for FY24, over 308 metric tons of gold are held in India as backing for currency notes, while an additional 100.28 metric tons are held as an asset by the banking department.
The movement of gold was carried out with the utmost secrecy by officials from the Ministry of Finance, the RBI, and other relevant agencies due to the high value of the asset. The repatriated gold is now securely stored in high-security vaults located in Mumbai and Nagpur.
This strategic move ensures a more balanced distribution of India's gold reserves, enhancing the security and accessibility of these assets. By storing a significant portion of its gold domestically, India aims to bolster its economic stability and reduce dependency on foreign storage facilities.
India continues to maintain a robust position in gold holdings globally, reflecting its commitment to secure and diversify its financial assets amidst evolving economic landscapes.
——— End of Article ———
