The Reserve Bank of India (RBI) recently transported 102 tonnes of gold from the Bank of England vault to India, aiming to reinforce the country’s economic stability. The gold, which is part of the RBI’s reserves, had been pledged in London during the 1990s financial crisis. Why did the RBI decide to bring it back.
This strategic move, kept confidential until its completion, was publicly announced on Dhanteras (October 29, 2024). The decision to repatriate gold reserves enhances India’s financial resilience and signals a robust approach to securing economic assets amid global uncertainties.
Bringing back 102 tonnes of gold from London, marking a significant step in its effort to strengthen foreign reserves. This move, led by the Reserve Bank of India (RBI), aims to enhance liquidity and bolster the country’s economic stability amid global uncertainties.
As of September 2024, the Reserve Bank of India (RBI) holds a total of 854.73 metric tonnes of gold, with 510.46 metric tonnes now stored within India. This recent 102-tonne repatriation follows a similar transfer of 100 tonnes in May, totaling 214 tonnes returned since 2022.
This strategic move by the RBI underscores a growing emphasis on securing assets domestically in response to rising global tensions. With this India not only secures its assets within its borders but also showcases a strategy to diversify reserves in response to fluctuating global markets.
The RBI continues to keep some of its gold reserves in the Bank of England to maintain access to the London bullion market, the global center for gold trading. This location offers liquidity and flexibility for managing reserves, as gold stored there can be quickly traded or accessed.
Additionally, the Bank of England is one of the world’s most trusted and secure depositories, making it a preferred choice for many central banks, including India’s, seeking proximity to major trading networks and a stable storage environment.
