RBI Boosts Gold Acquisitions to 77 Tonnes in January-October: Report
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Mumbai, Dec 6 (NationPress) The Reserve Bank of India (RBI) procured 27 tonnes of gold in October, raising its total acquisitions of the precious metal to 77 tonnes from January to October, according to a report by WGC based on information gathered by the International Monetary Fund (IMF).
The RBI's gold purchases over the first ten months of 2024 signify a remarkable five-fold increase compared to the quantity acquired during the equivalent period in 2023, as noted by WGC.
Data indicates that the RBI's total gold reserves have now reached 882 tonnes, with 510 tonnes stored domestically in India.
As per WGC, central banks in emerging markets have continued to lead the way in gold acquisitions, with Turkey and Poland adding 72 tonnes and 69 tonnes, respectively, to their reserves from January to October 2024.
These three central banks accounted for 60 percent of the total global net purchases recorded this year, as highlighted in the WGC report.
Like other central banks, the RBI has been acquiring gold as a safe-haven asset. This strategy is mainly focused on hedging against inflation and minimizing foreign currency risks, particularly during times of uncertainty caused by geopolitical tensions. The substantial gold purchases by central banks have also contributed to rising prices of the precious metal in global markets.
More than half of the RBI's gold reserves are securely stored overseas with the Bank of England and the Bank of International Settlements, while approximately a third is kept in the RBI's vaults located in Nagpur and Mumbai.
This year, the Reserve Bank transferred 100 metric tonnes of its gold held in bank vaults in the United Kingdom to its own vaults in India, as there was sufficient domestic storage capacity. This relocation is anticipated to lead to savings on the high fees previously incurred for vault usage in the UK.
"In recent years, data indicates that the Reserve Bank has been increasing its gold purchases as part of its reserves. We have adequate domestic storage capacity, which led to the decision to move a portion of the reserves to be stored within the country. That's all there is to it; no further implications should be drawn," stated RBI Governor Shaktikanta Das in June.
