The Reserve Bank of India (RBI) has recently transported 102 tonnes of gold from the Bank of England’s vaults to secure facilities within India, underscoring the central bank’s priority to keep valuable assets closer to home.
This move is part of a broader strategy, as since September 2022, India has repatriated a total of 214 tonnes of gold, reflecting the RBI’s intent to retain a larger share of its wealth domestically.
Of India’s 855 tonnes in gold reserves, 510.5 tonnes are now stored within the country. This shift is aligned with rising geopolitical uncertainties and a government objective to enhance security by managing more assets on home soil.
Government sources explain that maintaining these reserves within India provides added security amid global tensions and economic pressures.
The relocation process was conducted with stringent confidentiality and security, utilizing specialized aircraft and secure protocols, highlighting the government’s emphasis on safeguarding sensitive information and assets in an increasingly complex international landscape.
Earlier this year, India transferred 100 tonnes of gold from the Bank of England to local vaults, marking one of the largest repatriations since the 1990s—a time when the government pledged gold to tackle a financial crisis. Unlike those past measures, this current move is proactive, aimed at securing national wealth rather than addressing an economic emergency.
Currently, 324 tonnes of India’s gold remain with the Bank of England and the Bank for International Settlements in the UK. The Bank of England has long been a trusted custodian for central banks worldwide, offering a secure bullion storage facility since 1697 and access to the liquid London bullion market. However, reports indicate India may not move more gold from the UK this year.
Gold now represents 9.3% of India’s total foreign reserves, an increase from 8.1% in March. This uptick is supported by a surge in global gold prices, which stand at approximately Rs 78,745 per 10 grams in Mumbai.
Analysts anticipate prices could reach Rs 85,000 per 10 grams in the coming year, driven by heightened investor interest in gold during times of economic uncertainty, particularly with escalating tensions in regions like the Middle East.
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