With the highest gold purchase on a half-yearly basis, the Reserve Bank of India's (RBI) gold reserves, in proportion of its forex reserves, has crossed 700 tonnes for the first time, a report said on August 12.
The central bank purchased a record 29 tonnes of gold, as part of its forex reserves, in the first half of calendar year 2021, Business Standard reported. This takes the RBI's total gold reserves to 705.6 tonnes, as of June 30, 2021.
This marks a nearly 27 percent surge in the past two years. The gold holding of the RBI, at the start of 2018, had stood at 558.1 tonnes.
Although the holding has cumulatively increased, the share of gold in the central bank's forex reserves dropped to 6.5 percent in June 2021 quarter, from 7 percent at the end of March, the report added.
During June 2021, the RBI's share of gold purchase among all global central banks was around 30 percent, the newspaper reported citing the data shared by World Gold Council (WGC). While all the central banks cumulatively purchased 32 tonnes of gold, India's share was around 9.4 tonnes, it added.
RBI, with 705.6 tonnes of gold reserves, now ranks 10th among all recognised central banks in the world in terms of gold holding as part of their forex reserves."Central banks are likely to continue buying gold on a net basis in 2021 at a similar or higher rate than in 2020, driven by a continued focus on diversification and risk management," WGC stated in its latest report.