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Gold Relocation from UK for Storage and Logistical Reasons
According to a news story published in The Times of India (TOI), the Reserve Bank of India (RBI) has added slightly more than 100 tons of gold to its vaults around the country, the highest since early 1991. The relocation happened in the UK, or United Kingdom.
Government sources who talked with TOI claimed that the gold was moved domestically for a variety of storage and logistical reasons. This implies that in the next months, gold may be arriving into the country in a similar quantity.
Significant Portion of Gold Previously Held Overseas
According to the TOI report, the RBI kept 413.8 tons of gold outside at the end of March, out of 822.1 tons total. The most recent data provides the foundation for this information. Having obtained 27.5 tons
Many central banks, notably India, which has considerable pre-Independence yellow metal assets in London, have long used the Bank of England as a warehouse.
Strategic Gold Purchases and Storage Decisions
The RBI started purchasing gold a few years ago and has reportedly assessed its storage choices on a regular basis, an official informed TOI. As the gold stock was rising overseas, it was decided to ship some of the gold to India.
Most Indians have strong feelings about gold, especially since the Chandra Shekhar government vowed to use the precious metal to solve the country’s balance of payments issue in 1991.
Strategic Gold Purchases and Storage Decisions
Economist Sanjeev Sanyal wrote on social media platform X: “The RBI has moved 100 percent while no one was looking. “Even though the Indian central bank acquired 200 tons of gold from the International Monetary Fund about 15 years ago, it has been gradually increasing its stock holdings through purchases over the years before that. But getting 100 tons of gold, or about 25% of the country’s entire holdings as of the end of March, was a major logistical task that required precise planning and months of preparation.”
According to TOI’s news report, it called for close coordination between the RBI, the finance ministry, and several other governmental organizations, including local governments.
According to the news source, the RBI secured a customs duty exemption while the Center “foregoing revenue” on what is regarded as a sovereign asset in order to bring the gold into the country.
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