100 tonnes gold back to india
The central bank of India has brought back 100 tonnes of gold from the central bank of the UK. Reserve Bank of India has been working on the same prestigious issue for months. According to the latest report by the World God Council in 2023, 16 tonnes were brought back. Whereas, in the first quarter of 2024, 19 tonnes were brought back.
As per the latest information, RBI has got 822.10 tonnes of gold reserves. Out of which 408.31 is held domestically. Whereas, the rest of the gold is kept in the Central Banks of some European nations and the USA. Now, the RBI brought, 100 tonnes of gold back to India
SIGNIFICANCE OF BRINGING THE 100 TONNES OF GOLD BACK TO INDIA:
- Manifestation of the Risk: the G7 countries, decided to freeze all the gold reserves of Russia. When the Eurasia country falls out with its neighboring nation Ukraine. So, considering this sort of situation, RBI decided to bring back 100 tonnes of gold to India.
- Saving the cost: when any country keeps its gold reserves in another country. It is supposed to pay a substantial amount as service charges. All the nations, that consider themselves not capable enough to keep the gold protected, tend to keep their gold abroad.
- Boosts confidence of RBI: keeping gold reserves in the domestic country is a big responsibility for the central bank. Henceforth, it will boost RBI’s confidence in the stability of the Indian Economy. Apart from generating more power. Great power comes with great responsibility.
- Boosting of sovereignty: this step of bringing back the gold, is expected to boost the sovereignty of the masses. As Indians have a sentimental attachment to the gold.
According to the latest data available, India’s total gold reserve with RBI currently stands at 57.195 Dollars
Mr, Sanjeev Sanyal, Who is Prime Minister’s Economic Advisor Posted this note on One of his social media accounts, “While no one was watching, RBI has shifted 100 tonnes of its gold reserves back to India from the UK. Most countries keep their gold in the vaults of the Bank of England or some such location (and pay a fee for the privilege). India will now hold most of its gold in its vaults. We have come a long way since we had to ship out gold overnight in 1991 amid a crisis.”
OVERVIEW OF 1991 CRISIS:
Problems in India’s economy started in 1985, when the imports were exceeding the exports. Resulting in an increment of the balance of payment deficit. The Gulf War, in the 1990s, worsened the situation due to the increasing prices of crude oil. In this whole scenario, India reached a situation where it was not in a position to even finance three weeks’ worth of imports. So, there was a huge economic crisis going on due to the Balance Of Payments deficit. As the imports were exceeding the Exports.
Furthermore, the International Monetary Fund(IMF) suspended its loan that, it sanctioned for India. Along with the discontinuation of financial assistance from the World Bank’s side. All these drastic events happening consecutively forced the government to keep India’s gold reserves with Bank O England and Union Bank O Switzerland as collateral. To secure Foreign exchange.
The government of India accepted the conditions imposed by the IMF and World Bank and opened certain sectors for Foreign investment. Leading to LPG reforms. Rest is the history and integrity India presented in the 2008 global financial crisis. As the largest democratic nation in the world learned its lesson a decade before. Hopefully, this step of, bringing 100 tonnes of gold back to India will be appreciated in the future.
by: Sarabjet Mehla
