RBI Increases Gold Reserves by 72.6 Tonnes in 2024
The Reserve Bank of India (RBI) has significantly increased its gold reserves in 2024, adding 72.6 tonnes over the year. This expansion brings India’s total gold holdings to 876.18 tonnes, with a valuation of approximately $66.2 billion. The increase marks the highest annual addition since 2021 and reflects the central bank’s strategy to strengthen its reserve assets.
Gold Holdings See Significant Growth
At the end of 2023, the RBI held 803.58 tonnes of gold. By December 2024, this figure had risen to 876.18 tonnes, marking a substantial rise. The central bank’s gold acquisitions this year far exceeded the 18 tonnes added in 2023, demonstrating a shift towards greater gold accumulation.
Global Central Banks Boost Gold Reserves
India is among several nations that increased their gold reserves in 2024. Central banks worldwide have been actively purchasing bullion to hedge against economic uncertainties and currency fluctuations. India ranked among the top gold buyers, following Poland and Turkey, as central banks sought to diversify their reserves amid global financial uncertainties.
Why the RBI is Increasing Gold Reserves
The RBI’s decision to significantly increase its gold holdings aligns with its broader strategy to strengthen the country’s financial security. Key reasons for this move include:
- Hedging Against Currency Risks: Gold serves as a hedge against exchange rate volatility, ensuring reserve stability.
- Enhancing Reserve Value: With rising gold prices, these acquisitions contribute to higher valuation gains.
- Diversification Strategy: Increasing gold reserves reduces reliance on traditional currency assets, promoting a more balanced reserve portfolio.
Conclusion
The RBI’s aggressive gold accumulation in 2024 highlights its long-term strategy to fortify India’s financial resilience. As global economic conditions fluctuate, the central bank’s focus on gold ensures a stable and diversified reserve, providing greater security against external financial shocks.
