Reserve Bank of India Nearly Doubles Gold Repatriation Amid Global Tensions

India's central bank, the Reserve Bank of India (RBI), has accelerated the repatriation of its gold reserves, now holding over 65% of its gold domestically, nearly doubling the share from four years ago. The RBI brought back nearly 64 tons of gold in the first half of the current financial year, increasing domestic gold holdings to an all-time high of 576 tons out of a total 880 tons. This move is seen as a strategic effort to enhance control over the nation's bullion assets amid geopolitical uncertainties, including the freezing of Russia's reserves by Western nations following its invasion of Ukraine. While part of the gold remains overseas in the Bank of England and the Bank for International Settlements, the RBI has repatriated nearly 280 tons over the past four years. Additionally, the RBI is among the top global buyers of gold, aiming to reduce reliance on US dollars and has been trimming its US Treasury holdings. India’s total foreign-exchange reserves stand at $702.3 billion, the fourth largest globally, sufficient to cover over 11 months of imports.