India moves 102 tonnes of gold reserves home from UK citing geopolitical concerns
- In Reports
- 02:54 PM, Oct 30, 2024
- Myind Staff
In order to strengthen domestic reserves, the Reserve Bank of India (RBI) recently repatriated a substantial amount of its gold holdings from the Bank of England, the Times of India reported. This marks the second shipment since May, with the RBI reportedly moving about 100 million tonnes of gold back to India due to heightened geopolitical concerns. More shipments are expected to follow.
Out of its total 855 tonnes of gold, the central bank now holds approximately 510.5 tonnes within India. Since 2022, around 214 tonnes have been transferred from international vaults to Indian soil as RBI officials and government authorities prioritise securing these reserves at home.
This is the first major return of gold to India since the 1990s when the country sent gold abroad during a balance of payments crisis. The operation was a coordinated effort between the RBI and the government, utilising a special aircraft and high-level security measures to ensure safe transport of the gold reserves.
The report further noted that India still maintains around 324 tonnes of gold overseas, largely stored in the Bank of England and the Bank for International Settlements (BIS), with about 20 tonnes held in gold deposits. London’s Bank of England, a longstanding custodian for multiple central banks worldwide, houses around 400,000 gold bars (equivalent to 5,350 tonnes) within its nine underground vaults, which date back to 1697 and rank as the world’s second-largest after the Federal Reserve Bank of New York.
As global tensions persist, the RBI’s decision to bolster its domestic holdings of gold reflects an effort to reduce reliance on international storage and maintain greater control over India’s strategic assets. Further gold transfers are anticipated in the future, according to officials.
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