The Reserve Bank of India (RBI) has recently moved 102 tonnes of gold from the Bank of England’s vaults to secure facilities in India, emphasizing the central bank’s preference for keeping valuable assets closer to home. Since September 2022, India has repatriated a total of 214 tonnes of gold, reflecting the RBI’s commitment to maintaining a significant portion of its wealth domestically.
With this latest transfer, the RBI’s reserves now total 855 tonnes, with 510.5 tonnes stored within India. This move aligns with rising geopolitical tensions and the government’s objective of improving security by managing its assets on home soil.
The decision to repatriate gold comes amid escalating international tensions and economic challenges. According to government officials, retaining these reserves within India enhances security.
Transporting the gold required meticulous secrecy and advanced security measures, utilizing specialized aircraft and strict protocols. This indicates the government’s dedication to safeguarding sensitive information and assets, particularly as the global situation becomes more intricate.
This is not the first large-scale gold repatriation for India. In May, the country brought back 100 tonnes from the Bank of England, marking one of the most significant gold relocations since the 1990s. Unlike that instance, where gold was pledged as collateral during a financial crisis, this transfer is part of a proactive strategy to protect the nation’s wealth rather than a response to an economic emergency.
Currently, 324 tonnes of India’s gold reserves remain held by the Bank of England and the Bank for International Settlements, both located in the UK. The Bank of England has historically been a reliable custodian for central banks worldwide, providing a secure “bullion warehouse” since 1697. London’s bullion market also offers liquidity advantages; however, sources indicate that India is unlikely to withdraw additional gold from the UK this year.
Gold now comprises 9.3% of India’s total foreign reserves, an increase from 8.1% in March. This rise has been fueled by a rally in global gold prices, currently around Rs 78,745 per 10 grams in Mumbai. Analysts predict that prices could climb to Rs 85,000 per 10 grams over the next year, driven by growing investor interest in gold during times of economic uncertainty and conflict, especially in regions like the Middle East.