The Reserve Bank of India has increased the gold reserve stock by about 105 tonnes in the last 2 years. Amidst the economic uncertainty after the Kovid disease, the Reserve Bank looked to increase the stock of gold. From 2020 to March 2023, the Reserve Bank of India has increased the gold stock by 137.19 tonnes.
The Reserve Bank has gold worth Rs 3.75 lakh crore as gold reserves. India ranks eighth among the countries of the world. In 2008, when there was an economic recession in America. Since then the World Bank had advised all the Central Banks to increase the stock of gold. So that there is no foreign exchange crisis.
The Reserve Bank has 612.56 tonnes of gold in March 2019, 653.01 tonnes in March 2020, 695.31 tonnes in March 2021, 760.42 tonnes in March 2022 and 790.20 tonnes in March 2023.
When there are big ups and downs in the economy. In such a situation, gold plays a very important role in the work of foreign exchange and transactions.
Gold plays a very important role in cross border currency during times of uncertainty in the global economy. If additional currency has to be printed, the devaluation of the currency is limited due to the gold stock in it.
Gold is considered a reliable stock in foreign currency and foreign transactions. That’s why the central banks of all the countries of the world keep a stock of gold. It is recognized internationally.
