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Business News/ Markets / Commodities/  RBI's gold holding rises 17% to 2,30,734 crore on high prices, rupee depreciation
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RBI's gold holding rises 17% to ₹2,30,734 crore on high prices, rupee depreciation

The total gold held by RBI weighed at 794.63 metric tonnes, compared to 760.42 metric tonnes it held in the previous year, which means that the central bank bought an additional 34.21 metric tonnes of gold during the year.

The increase in value is due to an addition of 28.94 metric tonnes of gold by the RBI and also due to the rupee depreciating vis-à-vis the US dollar. (AP Photo/Newmont Mining, file)Premium
The increase in value is due to an addition of 28.94 metric tonnes of gold by the RBI and also due to the rupee depreciating vis-à-vis the US dollar. (AP Photo/Newmont Mining, file)

Reserve Bank of India (RBI) released it annual report for 2022-23 on May 30 which showed that the central bank significantly increased its bullion holdings in financial year 2022-23. The total gold held by RBI weighed at 794.63 metric tonnes, compared to 760.42 metric tonnes it held in the previous year, which means that the central bank bought an additional 34.21 metric tonnes of gold during the year.

Also Read: Gold, silver price on May 30: Precious metals trade mixed on weak global cues; check rates here

Out of the 794.63 metric tonnes that RBI held on 31 March 2023, 301.09 metric tonnes of gold was held as backing for currency notes it issued, according to the annual report. The value of gold (including gold deposit) held as asset of Banking Department increased by 17.20 per cent from 1,96,864.38 crore as on March 31, 2022 to 2,30,733.95 crore as on March 31, 2023.

This increase is on account of addition of 28.94 metric tonnes of gold and also due to increase in the price of gold and depreciation of INR compared to USD, said the RBI in its report.

In the comparative period last year, it held 295.82 metric tonnes of gold against currency notes. In March 2023, the RBI held 493.54 metric tonnes of gold as asset of Banking Department and in the previous financial year, it held 464.60 metric tonnes as assets.

RBI bought 3 tonnes of gold in February 2023, taking the total gold reserves to 790.2 tonnes of the country, according to the World Gold Council data. With this buying, India held eight per cent of the total world's gold reserves.

According to the data, in Q1 2022 the total gold reserves of India were 760.42 tonnes, 767.89 tonnes in Q2 2022, 785.35 tonnes in Q3 2022, and 787.40 tonnes in Q4 2022. The gold reserve data – compiled using IMF IFS statistics – tracks central banks’ reported purchases and sales along with gold as a percentage of their international reserves, the report said.

Gold plays an important part in central banks’ reserve management, and they are significant holders of gold. On May 30, gold price eased by 90 to 59,945 per 10 gram in the national capital amid weak global trends, according to HDFC Securities. In the previous trade, the precious metal had closed at 60,035 per 10 gram. Silver also went lower by 350 to 72,250 per kilogram.

 

Meanwhile, domestic spot gold closed at 60,402 per 10 grams on Tuesday, and silver at 70,861 per kilogram - both rates excluding GST, according to Mumbai-based industry body India Bullion and Jewellers Association (IBJA).

‘’Gold prices edged lower in Asian trading hours on Tuesday on high chances of the US debt-ceiling deal being sealed, softer dollar and reduced safe haven demand, said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities.

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Published: 30 May 2023, 07:56 PM IST
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