RBI Increases Gold Reserves Over Six Months

Swift Summary

• RBI increased its gold reserves by 25 tonnes (roughly 3%) in the second half of FY25, bringing total reserves to 879.59 metric tonnes by March 2025.
• Gold holdings’ value rose sharply by 18.9%, reaching $78.2 billion compared to $65.7 billion six months earlier, due to higher international gold prices.
• Gold’s share in foreign exchange reserves increased from 9.3% at the end of September 2024 to 11.7% by March 2025.
• In FY25, RBI added a total of 57.5 tonnes of gold-its second-highest yearly increase on record.
• The distribution includes:

– Domestic holding: 512 metric tonnes
– safe custody with Bank of England and BIS: 348.6 metric tonnes
– Deposited as gold assets: Around 19 metric tonnes

• India’s total foreign exchange reserves decreased from $705.8 billion in September to $668.3 billion in March due to interventions aimed at stabilizing the rupee.
• Import cover for foreign exchange dropped from 11.8 months (September) to approximately ~10 months (December).

Indian Opinion Analysis
India’s strategic increase in its gold holdings appears notable amid declining overall forex reserves and global economic uncertainties that influence currency stability and import costs pressures on rupee intervention efforts align logically with this approach experts view gesture worldwide recognize purchasing increasing ratio holistic logical buffer inflation–