Why does India keep its gold in England, how much gold is there in the country's treasury? - Newztezz - Latest News Today, Breaking News, Top News Headlines, Latest Sports News


Thursday, May 23, 2024

Why does India keep its gold in England, how much gold is there in the country's treasury?


Gold is the biggest means to save the country from crisis. For this, gold reserve is prepared. India also has a good amount of gold reserve, which is controlled by Reserve Bank of India (RBI). Now the big question arises that where is this gold kept? Most of India's gold is kept in the Bank of England in London, the capital of England. Not only India, gold of many other countries is also kept in London, let's know the reason for this.

Gold is a very important metal not only in the eyes of the common man but also in the eyes of the Reserve Bank. An important reason for this is that gold proves to be very helpful in dealing with the poor economic condition of any country. Due to this, RBI purchases gold indiscriminately.

India has so much gold

Today the Reserve Bank of India has hundreds of tonnes of gold. Apart from this, he keeps increasing his gold reserves every year. The Reserve Bank buys gold and just as we keep our valuables in a safe place, the Reserve Bank also keeps it safe. That is why more gold reserves are safe in other countries than what the Reserve Bank has kept in the country. India currently has a gold reserve of more than 822 tonnes. With this, it has reached ninth position in the list of 10 countries with highest gold reserves. The Reserve Bank has purchased about 100 tonnes of gold in the last two years alone.

Most gold was bought in 2022

Earlier in the year 2022, a report released by the Reserve Bank of India said that India has about 754 tonnes of gold. It was told that the Reserve Bank of India had bought 132.34 tonnes of gold between April 2022 and September 2022. Due to this, in 2022, the Reserve Bank became the central bank buying the most gold in the world. In the year 2021, the Reserve Bank was at the third position in this matter. In 2020, only 41.68 tonnes of gold was purchased.

Keeps most of the gold abroad

The Reserve Bank of India keeps most of the gold abroad. The central bank itself has said that out of the country's total gold reserves, only 296.48 tonnes of gold is kept safe in the country. At the same time, 447.30 tonnes of gold is kept safe in foreign banks. The maximum amount of gold is kept with the Bank of England. Some gold is also kept safe with Switzerland's Bank of International Settlement (BIS).

Security and transportation problems are the main reasons

There are two main reasons cited for the Reserve Bank of India to keep gold abroad. The first reason is that it is not easy to buy a large quantity of gold and bring it safely to the country. For this, a lot of money has to be spent on transportation and security. Also, if during a financial crisis, this gold has to be mortgaged, then it will have to be sent abroad again and this will cost a lot. A lot of security arrangements will also have to be made.

The same thing happened in 1990-91, when during the balance of payment crisis, India had to pledge its 67 tonnes of gold with the Bank of England and Union Bank of Switzerland. That is why the Reserve Bank of India keeps its gold safe abroad.

America has the most gold

Now an important question arises in the mind that which country has the most gold, then the answer is America. America alone has about 75 percent of the total gold reserves held by countries around the world. According to media reports, America has 8,133 tons of gold. After this, Germany has gold reserves of 3,359 tonnes.

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