Gold Reserves Surge Over 200% Under RBI Governor Shaktikanta Das

The share of gold in India’s foreign exchange reserves has skyrocketed by 211 per cent since Shaktikanta Das took office as the Governor of the Reserve Bank of India ( RBI ) in December 2018, according to RBI data. As of October 4, 2024, gold reserves stood at $65.756 billion, a significant increase from $21.150 billion on December 7, 2018.

Under Das's leadership, India’s total foreign exchange reserves have also experienced a notable rise of 78.1 per cent, reaching $701.176 billion as of October 4, 2024, compared to $393.735 billion nearly six years earlier. India’s foreign exchange reserves comprise foreign currency assets, gold reserves, Special Drawing Rights (SDRs), and the reserve position in the International Monetary Fund (IMF).

The foreign currency assets are influenced by fluctuations in the value of non-US currencies, such as the euro, pound, and yen, which are part of the country’s foreign exchange reserves.

Globally, central banks have been ramping up their gold purchases in response to economic uncertainties and rising inflation. A report by Moneycontrol on May 31 indicated that in the fiscal year 2023-24, the RBI added 27.47 tonnes of gold to its reserves, increasing the total to 822.10 tonnes from 794.63 tonnes the previous year.

Currently, the RBI holds 309.03 tonnes of gold as backing for the currency issued in India, along with gold (including deposits) in the banking department and abroad totaling 514.07 tonnes.

The RBI has repatriated over 100 tonnes of gold from the UK, marking the largest addition to its treasury since 1991, according to a TOI report. Further acquisitions of gold may occur in the coming months for logistical reasons and to diversify storage, the report said.

Shaktikanta Das has served as the Governor of the RBI since December 12, 2018, leading the bank through a period of significant growth in gold reserves amidst evolving global economic conditions.