RBI Shifts 102 Tonnes of Gold from Bank of England to India Amid Geopolitical Concerns

DY365
DY365
Published: October 30,2024 12:23 PM
DY365

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RBI Shifts 102 Tonnes of Gold from Bank of England to India Amid Geopolitical Concerns

October 30, 2024: In a significant move reflecting both national security and economic strategy, the Reserve Bank of India (RBI) has successfully transported 102 tonnes of gold from the Bank of England’s vaults in London to secure locations across India. This announcement coincides with Dhanteras, a day traditionally associated with purchasing gold in India.



According to the latest report on the management of foreign exchange reserves, as of September, the RBI held a total of 855 tonnes of gold, with 510.5 tonnes stored domestically. The recent shipment is part of an ongoing effort to repatriate gold, with 214 tonnes having been brought back since September 2022. This move comes amid rising geopolitical tensions, prompting government officials to believe that it is safer to hold gold within the country.



The operation marks the first significant transfer of gold since the early 1990s when India was compelled to pledge its gold reserves during a balance of payments crisis. Just like previous operations, this transfer involved extensive security measures and special aircraft to ensure the process remained confidential and secure from leaks.



Currently, 324 tonnes of gold are still held in custody at the Bank of England and the Bank for International Settlements (BIS), with more than 20 tonnes in gold deposits. The Bank of England is renowned as one of the largest gold custodians globally, housing around 5,350 tonnes of gold, making it a critical player in the international bullion market.



RBI's increasing gold reserves now account for 9.3% of India’s foreign exchange reserves, up from 8.1% in March. This growing trend highlights the central bank's strategy to strengthen its gold holdings as a buffer against economic uncertainties.