RBI’s Gold Reserves Jump by $16.23 Billion in 2025 Amid Global Uncertainty

Image Source: BFSI News

The Reserve Bank of India (RBI) has made a significant move in 2025, increasing its gold reserves by $16.23 billion so far this year as global and domestic uncertainties continue to rise.

Key Highlights:

Record Gold Accumulation: RBI’s gold holdings reached 879.58 metric tonnes as of March 31, 2025, up from 822.10 metric tonnes a year earlier. This marks an increase of 57.48 tonnes—the largest annual addition in seven years.
Value Surge: The value of RBI’s gold reserves soared to $83.32 billion by June 13, 2025, compared to $67.09 billion at the start of the year. Gold now accounts for over 12% of India’s net foreign assets, nearly doubling its share from four years ago.
Strategic Shift: The RBI’s gold buying spree is part of a broader strategy to diversify reserves and reduce reliance on the US dollar, especially as gold prices have surged 30% during the acquisition period.
Global Trend: The RBI’s aggressive accumulation mirrors a global move among central banks to boost gold reserves as a hedge against inflation, currency volatility, and geopolitical risks.
Storage and Security: Of the RBI’s gold, 512 tonnes are stored in India, 349 tonnes are held overseas with the Bank of England and BIS, and about 19 tonnes are kept as deposits.
Market Impact: The rise in gold holdings has helped offset declines in other foreign exchange assets, providing stability amid a volatile dollar, fluctuating oil prices, and ongoing geopolitical tensions.
Looking Ahead: According to the World Gold Council, central banks are likely to continue increasing gold reserves as volatility and unpredictability remain high in global markets.