Wait...
Search Global Export Import Trade Data
Recent Searches: No Recent Searches

Rising gold price vindicates RBI’s investment plan.


Date: 12-11-2018
Subject: Rising gold price vindicates RBI’s investment plan
MUMBAI: The Reserve Bank of India’s gold purchase plan seems to be paying off as the monthly valuation gains have touched an eight month high with investor demand for a safe haven rallying the yellow metal. 

The value of gold in the country’s foreign exchange reserves rose 1.7 per cent in three weeks from October 12 to November 2 at $20.9 billion. Gold prices rose 2 per cent during the same period. 

India’s reserves are at $393 billion and gold comprises about 5 per cent of the total reserves. 

According to the central bank, gold, including the gold deposits placed abroad, is revalued on the last business day of the month at 90 per cent of the average of the gold price quoted daily by London Bullion Market Association for the month. The rupee equivalent is determined on the basis of the exchange rate prevailing on the last business day of the month. Unrealised gains/ losses are credited/debited to the currency and gold revaluation account. With currency markets turning volatile since December after the US Federal Reserve started raising interest rates, which caused foreign investors to pull out their funds from the emerging markets including India, the Reserve Bank, like many other central banks, started buying gold as a hedge against volatile currency markets. 


It was for the first time in nine years that the RBI was buying gold. It has bought 9.5 lakh troy ounce of gold since December 2017. 

Central banks across the globe, including RBI, have added a net 193.3 tonnes to their stock of gold reserves in the first six months of 2018, up 8 per cent from the same period a year ago, according to a recent report by the World Gold Council. 

The International Monetary Fund (IMF) in its 2018 Global Financial Stability Report highlighted the relevance of gold in a country’s foreign exchange reserves, both for the longterm and near term – from a tactical and strategic perspective. 

Economists reckon that investing in gold is a prudent treasury move by the central bank at a time of rising yields. 

RBI has already sold close to $17 billion worth of US treasury securities between April and August, data with the US treasury department showed. This could help the central bank rein in mark to market losses. 

Source: economictimes.indiatimes.com

Get Sample Now

Which service(s) are you interested in?
 Export Data
 Import Data
 Both
 Buyers
 Suppliers
 Both
OR
 Exim Help
+


What is New?

Date: 28-02-2025
Notification No. 12/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 14-02-2025
Notification No. 10/2025-CUSTOMS (N.T.)
Fixation of Tariff Value of Edible Oils, Brass Scrap, Areca Nut, Gold and Silver- Reg.

Date: 13-02-2025
Notification No. 14/2025-Customs
Seeks to amend Notification 11/2021-Customs dated 01.02.2021 to amend AIDC rate on Bourbon whiskey

Date: 11-02-2025
NOTIFICATION No. 09/2025–Central Tax
Seeks to bring rules 2, 8, 24, 27, 32, 37, 38 of the CGST (Amendment) Rules, 2024 in to force

Date: 03-02-2025
[F. No. CBIC-190354/236/2021-TRU]
Corrigendum to Notification No. 50 of 2024 Customs, dated the 30th December, 2024.

Date: 01-02-2025
Notification No. 13/2025-Customs
Seeks to further amend notification No. 153/94-Customs dated the 13 th July, 1994.

Date: 01-02-2025
Notification No. 12/2025-Customs
Seeks to further amend notification No. 19/2019 dated 06 th July 2019.

Date: 01-02-2025
Notification No. 11/2025 – Customs
Seeks to further amend notification No. 25/2002-Customs, dated the 1st March, 2002 so as to add capital goods to the already existing list of capital goods exempted from basic customs duty for manufacture of lithium-ion battery of mobile phones and electrically operated vehicles.

Date: 01-02-2025
Notification No. 09/2025-Customs
Seeks to further amend notification No. 16/2017-Customs, dated the 20 th April, 2017 so to exempt certain drugs for supply under Patient Assistance Programme run by specified pharmaceutical companies.

Date: 01-02-2025
Notification No. 07/2025-Customs
Seeks to further amend notification No. 11/2018-Customs dated 02 th February, 2018 so as to exempt specified goods from the whole of levy of Social Welfare Surcharge.



Exim Guru Copyright © 1999-2025 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o InfodriveIndia Pvt Ltd
F-19, Pocket F, Okhla Phase-I
Okhla Industrial Area
New Delhi - 110020, India
Phone : 011 - 40703001