RBI is accumulating gold to maintain a balanced reserve portfolio: FM

Union Finance Minister Nirmala Sitharaman on Monday reportedly said in the Lok Sabha that Indias rising gold reserves, including those held by the Reserve Bank of India (RBI), is not intended to replace any international currency. Gold is also kept in the Reserve Bank and gold is also being bought by the Reserve Bank. But beyond that, as regards an international currency or potential currency, there is not much for me to comment at this stage, the Minister said. Sitharaman confirmed that the RBI is accumulating gold to maintain a balanced reserve portfolio. While the US dollar has been a dominant component of Indias foreign exchange reserves, the RBI also holds reserves in other currencies and gold. She stressed that the move is part of a strategy to diversify reserves rather than an indication of India shifting away from the dollar or pushing for an alternative international settlement mechanism.

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