Context:
In FY25, the Reserve Bank of India (RBI) purchased 57.5 tonnes of gold, its second-highest annual acquisition since 2017, driven by global uncertainties and a surge in gold prices.
Key Highlights
- Total Gold Holdings: Reached 879.6 tonnes as of March 2025, up from 822.1 tonnes in FY24
- Year-wise Purchases:
- FY22: 66 tonnes (highest)
- FY23: 35 tonnes
- FY24: 27 tonnes
- Gold Price Surge: Global prices rose 30%, enhancing gold’s appeal as a safe-haven asset
- Trump Re-election Effect: Dollar volatility post-Nov 2024 election spurred RBI’s gold buy
- India’s Global Rank: Now 7th in global gold reserves, up from 10th in 2015
- Gold in Forex Reserves: Rose from 6.86% (2021) to 11.35% (2024)
Forex Reserves Context
- Definition: Assets held by RBI in foreign currencies, bonds, T-bills, etc.
- Main Components:
- Foreign Currency Assets (FCA) – largest
- Gold Reserves – second largest
- Special Drawing Rights (SDR) – IMF-backed asset based on five major currencies
- Reserve Tranche Position (RTP) – IMF quota-based emergency borrowing facility
RBI’s gold purchases align with a strategy to hedge against currency volatility, diversify reserves, and enhance financial s
