India's RBI Accelerates Gold Repatriation Amid Global Trust Issues
RBI accelerates gold repatriation as global trust wanes
The Economic TimesImage: The Economic Times
The Reserve Bank of India (RBI) has repatriated nearly 77% of its gold reserves by March 2026, reflecting a shift towards domestic holdings amid global skepticism about storing assets abroad. This move, influenced by geopolitical events, has increased gold's share in India's foreign exchange reserves to 16.70%.
- 01RBI repatriated 77% of its gold reserves by March 2026.
- 02Total gold held domestically reached 301.1 metric tonnes.
- 03Gold's share in foreign exchange reserves increased to 16.70%.
- 04Holdings with foreign banks reduced from 290 metric tonnes to 197.6 metric tonnes.
- 05Repatriation accelerated due to geopolitical events like the Russia–Ukraine war.
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The Reserve Bank of India (RBI) has significantly increased the repatriation of its gold reserves, bringing back nearly 77% by the end of March 2026. This marks a rise from 65.4% six months prior, as geopolitical tensions have raised concerns about the safety of sovereign assets stored overseas. The RBI held 880.52 metric tonnes of gold at the end of March, with about 680 metric tonnes repatriated and 197.67 metric tonnes remaining with the Bank of England and the Bank for International Settlements. The shift towards domestic holdings has seen gold's share in total foreign exchange reserves rise to 16.70%, up from 13.92% six months earlier. This trend reflects a broader global movement, as countries reassess the security of their gold reserves in light of recent geopolitical events, including the Russia–Ukraine war and the Taliban's takeover of Afghanistan.
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The repatriation of gold could enhance India's financial security and reduce reliance on foreign institutions, potentially stabilizing the economy.
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