SEATTLE (Scrap Monster): The Reserve Bank of India (RBI) reinforced its commitment to gold as a diversifier by acquiring nine tonnes in the September 2023 quarter, contributing to the 337 tonnes amassed globally by central banks. India now holds 806.7 tonnes of gold, securing the 10th position in global reserves, according to the World Gold Council.
RBI's gold purchases in 2023 amount to 19.3 tonnes, and the central bank has consistently added to reserves since 2017, accumulating 248.9 tonnes. As of September 2023, India's total forex reserves reached $586.9 billion, with gold accounting for $43.7 billion or 7.44%. Recent data shows reserves at $590 billion on 10 November 2023, with gold valued at $45.5 billion or 7.7%.
This strategic move is seen as a response to volatility in US treasuries and foreign exchange markets. Gold serves as a diversifier amid fluctuations in US T-bill yields and the dollar. RBI's approach aligns with its internal policy, balancing currency holdings with gold as a percentage of overall reserves.
As the US dollar index falls, dropping 3% in the month to below 104, RBI's gold strategy aligns with a global trend. China's central bank also increased gold reserves by 78 tonnes in Q3 2023, reaching 2,192 tonnes (4% of total reserves). Other notable buyers include the National Bank of Poland (57 tonnes) and Turkey (39 tonnes).