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RBI Gold Purchases of 57.5 Tonnes in FY25

25 April 20251 min read
ECONOMYRBI GoldPurchases of 57.5Tonnes in FY2525 April 2025safalsetu.com

Why in the news

The RBI kept building its gold stock in FY25 as global risks, a shaky dollar and weaker appeal of US Treasuries pushed central banks towards bullion.

Key facts

  • Buying of 57.5 tonnes trails only the 66 tonnes of FY22.
  • Holdings: 822.1 to 879.6 tonnes; share in forex reserves: 8.7% to 11.8%.
  • A 30% rise in global gold prices lifted the value of existing stock.
  • RBI rarely sells gold and ranks safety and liquidity above returns.

Global drivers

  • A volatile dollar, notably after Trump’s re-election in November 2024.
  • Central banks seek safety and inflation cover; the World Gold Council called them pivotal to 2024 demand.

Pace

  • Buying slowed in December and February, below the 6.6 tonnes a month average of January-November 2024, hinting at a calibrated approach.

Exam angle

  • Reserve goals: safety, liquidity, then returns.
  • FY22 peak: 66 tonnes.

Test yourself

1. How much gold did the RBI add to its reserves in FY25?

The notes state an addition of 57.5 tonnes.

2. What share of India's forex reserves was gold as of March 2025?

The gold share rose to 11.8% from 8.7%.

3. In which fiscal year did the RBI make its largest annual gold purchase of 66 tonnes?

FY25's buying was second to the 66 tonnes bought in FY22.