RBI's Billion-Dollar Bet on Gold and Its Implications for the US Dollar
The Reserve Bank of India (RBI) is reshaping its reserve strategy, signaling a waning faith in the long-term strength of the US dollar.
India's central bank has been increasing its gold holdings while reducing its exposure to US Treasury securities, highlighting global unease over the dollar's dominance and value.
- The RBI's gold reserves have crossed 880 tonnes, the highest level ever, with 600 kilograms added since the start of the fiscal year.
- Holdings of US Treasury securities have slipped to a seven-month low of $219 billion, according to the US Department of Treasury.
The RBI's gold buying spree has gathered pace this year, with significant additions in recent weeks.
The RBI added 200 kilograms in the week ending September 26 and another 400 kilograms in the week ending June 27.
Author's summary: RBI diversifies reserves, boosts gold holdings amidst dollar uncertainty.