RBI boosts its gold reserves over 6 months

MUMBAI: In the second half of FY25, even as the country’s foreign exchange reserves decreased from $705.8 billion to $668.3 billion, RBI increased its gold holdings. According to RBI’s half-yearly report, the central bank’s gold reserves grew by 25 tonnes (roughly 3%) in the six months to the end of March 2025, reaching 879.59 metric tonnes, up from 854.73 metric tonnes at the end of Sept 2024.This bullion accumulation was accompanied by a sharp rise in value. Gold holdings rose by 18.9% to $78.2 billion, from $65.7 billion six months prior, reflecting higher international gold prices. Consequently, gold’s share of forex reserves increased from 9.3% at the end of Sept 2024 to 11.7% by the end of March 2025. In FY25 RBI bought 57.5 tonnes – the second highest addition in history.Of its holdings of the yellow metal, RBI retains 512 metric tonnes domestically. The Bank of England and the Bank for International Settlements hold 348.6 metric tonnes in safe custody, while 19 metric tonnes are held as gold deposits. The foreign exchange reserves’ cover for imports decreased from 11.8 months at the end of Sept 2024 to 10.5 months at the end of Dec 2024 as RBI used up some of its foreign currency assets to stabilise the rupee.