Reserve Bank of India Gold Reserves Surged 7%

SEATTLE (Scrap Monster):  The Reserve Bank of India (RBI) reported notable surge to its total gold reserves in the previous fiscal year ended March 2020. The value of gold reserves rose substantially in comparison with the fiscal prior to it.

The country’s central bank added 40.45 tonnes of gold to its reserves during the financial year 2019-’20, this taking the total reserves to 653.01 tonnes. It must be noted that the holdings had totalled only 612.56 tonnes in the preceding fiscal ended March 2019. The value of gold reserves skyrocketed to $30.57 billion when compared to $23.07billion in end-March last year. 

ALSO READ: India's Central Bank Eases Restrictions on Gold Auction

The latest report published by the RBI said that more than 50% of the total gold holdings were in overseas locations. The gold holdings under the safe custody of the Bank of England and the Bank for International Settlements totalled 360.71 tonnes. The investment with securities totalled $263.4 billion, whereas deposits with central banks amounted to $147.5 billion. The amount invested in bonds issued by the India Infrastructure Finance Company (UK) Ltd stood at $1.86 billion. The remaining gold is held in domestic vaults.

The share of gold in total foreign exchange reserves rose from 5.59% to 6.40% in US dollar terms over the previous year, the report said.