EDITOR NOTE: The U.S dollar is in trouble, and countries like India know it. With inflation rapidly rising and the dollar’s position as the world’s reserve currency in danger when the IMF revalues its global SDR basket on September 30, countries are quietly shifting their own reserves. India is one of these countries, buying a record amount of gold in the first half of 2021. The Reserve Bank of India increased its gold holdings from 558.1 to 705.6 tonnes. It is the first time in history RBI has held more than 700 tonnes of gold. This is yet another example of a country looking towards the near future and trying to protect itself with gold.
The Reserve Bank of India’s (RBI) gold holdings, as a percentage of its currency reserves, have surpassed 700 tonnes for the first time, according to a report on August 12.
According to Business Standard, the central bank acquired a record 29 tonnes of gold as part of its currency reserves in the first half of the calendar year 2021. As of June 30, 2021, the RBI’s total gold reserves were at 705.6 tonnes.
This is a roughly 27 percent increase in the last two years. The RBI’s gold holdings were 558.1 tonnes at the start of 2018.
Although the holding has grown over time, gold’s proportion of the central bank’s foreign reserves fell to 6.5 percent in the June 2021 quarter, down from 7 percent at the end of March, according to the report.
Original post from Insight Success