Why are 50% of India's Gold Reserves Abroad?
50% of In
dia's Gold Reserves Abroad
of gold reserves, of which
437.22 are held abroad
Where are The Gold Reserves Held?
Indian Gold is held with the
Bank of England & the Bank of International Settlements
Why are Gold Reserves Held Outside?
These banks provide a sense of security. Holding Gold in different locations helps
India’s Gold in The
Bank of England
bank is a global gold trading hub
. India can buy/sell gold reserves via the London Metal Exchange cheaply.
How are The Reserves Maintained in The Bank of England?
We send them money when we want to add gold to our reserves. They buy on our behalf.
RBI Also Holds Gold in BIS
Located in Switzerland, BIS is a neutral agency without significant US influence.
Being a Neutral Agency Makes BIS Very Safe
They can provide liquidity against the gold reserves relatively quickly in times
There is a 0.001% Chance That "Fort
Knox" is Empty
This means the gold might exist only on paper, even though both banks have excellent track
Unable to Access The Gold in The Forex Reserve
Plus, if sanctions are placed on us, we may be unable to access this gold, even though it belongs t
What Does Sanction Mean?
To sanction means to impose a penalty. In the context of accessing forex reserves, sanctions mean, Freez
ing assets Prohibiting transactions
What Happened With Russia?
Russia was under sanctions last year, & the gold reserves were held in Russia only.
Could Russia Use Their Forex Reserves?
They couldn’t use it but could purchase gold on the open market and use it to access
high-quality forex currencies.
Should Gold Reserves be Held Abroad?
Holding gold forex reserves has its pros & cons. Given the current geopolitical climate, do you think our gold reserves should be held abroad or brought back?
Earn 9 - 11%
More Wint Stories
What are Gold BeES & How to Buy Them?
EGRs & Their Impact on The Indian Gold Market.