New Delhi1 minute ago
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Dhanteras On the same day, the Reserve Bank of India reported that it had moved 102 tons of gold from the Bank of England vault in London to a safe location in the country.
The new foreign exchange deposit management report shows that as of the end of September, of the 855 tons of gold held by the Reserve Bank of India, 510.5 tons were safely kept in the country.
214 tonnes of gold have entered the country since September 2022
Since September 2022, 214 tons of gold have been brought into the country. Governments want to keep gold safe amid rising global geopolitical tensions. Many in the government believe it is safer to keep gold at home.
100 tons of gold also arrived in India in May
Earlier on May 31, it was reported that 100 tons of gold had been shipped from the United Kingdom to India. In the early 1990s, India’s economic conditions were weak and it had to mortgage its gold. This is the first time so much gold has returned to India.
Like last time, the Reserve Bank of India and the government carried out a secret mission to bring gold into the country using special aircraft and security arrangements. To ensure the safety of gold, we remember not to leak any kind of information.
RBI joins India in keeping gold overseas
The Reserve Bank of India retains gold not only in India but also abroad. Central banks want to store gold in different places to reduce risk. First, keep in mind the safety of gold.
If India’s economic situation worsens due to disaster or political instability, the gold left abroad can come in handy to overcome it. Natural disasters can also take a toll on gold reserves. This risk can be reduced by storing gold in different locations.
The UK is a gold storehouse for many central banks.
The Bank of England has historically been the gold warehouse for many central banks. A certain amount of gold was already stored in London before India’s independence because before independence, Britain kept India’s gold in the Bank of England. Therefore, even after independence, India kept some gold in London.
The Bank of England holds approximately 324 tons of Indian gold.
Currently, 324 tons of gold are held by the Bank of England and the Bank for International Settlements. Many countries store gold in the Bank of England. It is the second largest gold custodian after the Federal Reserve Bank of New York.
The British Bullion Warehouse was built in 1697
“Gold and Silver Warehouse” – Built in 1697, it was later expanded to store gold from Brazil to Australia, and from California to South Africa. It contains approximately 400,000 gold bars. In September, the safes contained approximately 5,350 tons of gold.
Gold maintains economic stability and therefore is stored
If a country’s currency weakens internationally, gold reserves help maintain the country’s purchasing power and its economic stability. In 1991, when India’s economy fell into recession and there were no U.S. dollar imports, it raised funds by pledging its gold to get out of the financial crisis.
Having large reserves means the country has a strong economy. It also shows the country’s ability to manage money well. In this case, other countries and global financial institutions trust the country more. Gold reserves provide a solid asset that supports the value of any country’s currency.