On Dhanteras (October 29, 2024), the Reserve Bank of India (RBI) announced that it has secretly transported an additional 102 tonnes of gold from the Bank of England to secure storage facilities in India. This careful operation was part of the RBI’s plan to safely and discreetly move the gold back home.
According to the RBI’s ’43rd Half Yearly Report on Management of Foreign Exchange Reserves: April – September 2024,’ India now holds a total of 854.73 metric tonnes of gold in both domestic and overseas storage. Here’s the breakdown:
- 510.46 metric tonnes are stored within India.
- 324.01 metric tonnes are kept with the Bank of England and the Bank for International Settlements (BIS).
- 20.26 metric tonnes are held as gold deposits.
Since September 2022, India has brought back about 214 tonnes of gold from overseas locations. In May, approximately 100 tonnes were returned from the Bank of England. The government is focusing on safeguarding its assets amid increasing global geopolitical tensions.
The share of gold in India’s total foreign exchange reserves has also grown. It increased from 8.15% at the end of March 2024 to about 9.32% at the end of September 2024, according to the report. This highlights gold’s growing importance in India’s financial strategy.
Why Do India and Other Countries Store Gold with the Bank of England?
India’s RBI stores gold in England mainly because it provides immediate access to the London bullion market, one of the world’s largest and most active gold markets. The Bank of England is the world’s second-largest keeper of gold, after the New York Federal Reserve. Storing gold there allows for easy trading and liquidity, which is beneficial for managing a country’s foreign exchange reserves.
