As global gold prices rise due to geopolitical tensions, the Reserve Bank of India (RBI) reported that its gold reserves reached 854.73 metric tonnes as of September 30. Notably, 510.46 metric tonnes of this gold were held domestically, reflecting an increase of over 102 tonnes from 408 metric tonnes at the end of March this year.
The RBI’s “Half-Yearly Report on Management of Foreign Exchange Reserves: April-September 2024” revealed that of the total gold holdings, 324.01 metric tonnes are securely stored with the Bank of England and the Bank for International Settlements (BIS), while 20.26 metric tonnes are held in gold deposits.
In terms of value, gold’s share in total foreign exchange reserves rose from 8.15% at the end of March 2024 to approximately 9.32% by the end of September. During this half-year period, India’s foreign exchange reserves increased significantly from $646.42 billion in March to $705.78 billion in September.
On a balance of payments basis (excluding valuation effects), foreign exchange reserves grew by $5.2 billion during April-June 2024, a decline compared to the $24.4 billion increase in the same period the previous year. Including valuation effects, reserves rose by $5.6 billion in April-June 2024, down from $16.6 billion a year earlier.
The RBI reported that its net forward asset (payable) stood at $14.58 billion at the end of September. From June 2023 to June 2024, external assets rose by $108.4 billion while external liabilities increased by $97.7 billion.
As of June 2024, the net International Investment Position (IIP) was negative at $368.3 billion, an improvement from the negative $379.0 billion recorded in June 2023, indicating a decrease in the gap between external liabilities and assets.
The foreign currency assets (FCAs), amounting to $617.07 billion at the end of September 2024, include a diversified portfolio. Of this total, $515.30 billion is invested in securities, $60.11 billion is deposited with other central banks and the BIS, and the remaining $41.66 billion consists of deposits with overseas commercial banks.
