RBI Gold Reserve : The Reserve Bank of India (RBI) is preparing to increase the purchase of gold. The reasons behind this include supporting the falling rupee. RBI's target is to buy 50 tonnes of gold by the end of FY25. The central bank is also increasing foreign exchange reserves. Along with this, RBI also wants to reduce the volatility of the rupee against the dollar. RBI has increased the purchase of gold since October last year. By increasing the purchase of gold, the share of gold in the foreign exchange reserve will become much higher and stronger. The share of gold reserve in the foreign exchange reserve reached a record high in September. This supported the rupee against the dollar. These are all the reasons due to which RBI is buying more gold than before.

Effective in tackling inflation

According to a TOI report, the RBI says that its gold reserves are primarily used to diversify the portfolio of foreign currency assets and provide protection against inflation and currency risks.

How much gold did you buy

RBI has bought a total of 32.63 tonnes of gold during April to September in the financial year 2024-25. This increased India's gold reserve from $52.67 billion to $65.74 billion. According to a report of the Reserve Bank, 324.01 metric tonnes of India's gold is with the Bank of England and the Bank for International Settlements.

When gold had to be mortgaged

Gold is very important for India. In fact, in 1991, India had to mortgage 87 tonnes of its gold to avoid defaulting. Then India got foreign exchange reserve for emergency which enabled payment of foreign currency for imports.