Source: DD News
Context: India’s total gold reserves held by the Reserve Bank of India (RBI) amount to 854.73 metric tonnes, according to the central bank’s latest report.
India’s Gold Reserve Status:
- Total Gold Reserves: 854.73 metric tonnes, with 510.46 metric tonnes held domestically and 324.01 metric tonnes stored at the Bank of England and BIS.
- Gold’s Share in Total Reserves: Gold now represents 9.32% of forex reserves as of September 2024, an increase from 8.15% in March.
- Import Cover: As of June 2024, forex reserves cover 11.2 months of imports, slightly down from March’s 11.3 months.
- World ranking: (as of September 2024)
- Top rankers are United States, Germany and Italy.
- The United States has the most gold reserves and has nearly as many reserves as the combined total of the next three countries with the largest gold holdings: Germany, Italy, and France.
- India holds a significant position in global gold reserves, ranking 8th in the list of countries with the most gold reserves.
About Forex Reserves:
- Definition: Forex reserves are assets held by RBI in foreign currencies, including foreign currencies, gold, SDR (Special Drawing Rights), and RTP (Reserve Tranche Position) with the IMF.
- Purpose: They support the Indian rupee, stabilize the exchange rate, and enable monetary policy adjustments. Reserves also back liabilities and serve as a safety net in times of currency devaluation.
- Importance: A strong forex reserve helps India attract foreign trade and investment, enhancing its international reputation and economic resilience.
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