$12 Billion Reserve Speculation
New Delhi: The Reserve Bank of India (RBI) on Wednesday firmly rejected reports suggesting it had sold gold worth $12 billion to support the rupee amid recent global market volatility.
Calling the claims “incorrect and misleading,” the central bank clarified that India’s physical gold holdings remain unchanged at 880.52 metric tonnes.
The clarification follows reports citing a Bloomberg Economics analysis, which indicated a possible decline in gold holdings during the two-week period ending May 22. The analysis had led to speculation that the RBI may have liquidated part of its gold reserves while adjusting foreign exchange assets.
However, the RBI dismissed this interpretation, stating that no gold sale had taken place and that reserve data does not support such conclusions.
The Union government also denied the reports, making it clear that no transaction involving a $12 billion gold sale was carried out to stabilise the Indian rupee. Officials said the speculation was unfounded and not based on any official financial activity or confirmation from the central bank.
The reports emerged during a period of pressure on the Indian rupee, driven by rising crude oil prices, capital outflows, and geopolitical tensions in West Asia. Market observers had linked changes in reserve composition to potential gold sales, sparking widespread debate over RBI’s foreign exchange management strategy.
The RBI reiterated that gold remains a key component of India’s foreign exchange reserves and forms part of its long-term diversification strategy. It added that while reserve composition may evolve across asset classes, no sale of gold has occurred as suggested in recent media reports.
Officials urged market participants to rely on verified data and official disclosures, especially during periods of global economic uncertainty and currency volatility.
