New Delhi: The Reserve Bank of India has issued a clarification that it has not sold/traded gold of late, reported ANI. The notification comes in the wake of news reports which claimed that the central bank has taken this unprecedented decision to sell off its reserve gold to plug revenue shortfall. WhatsApp forwards are also doing the rounds that this is the first time in 30 years that the RBI has to sell gold. Especially after the RBI transferred Rs 1.76 lakh crore of RBI’s surplus to the Modi government, the reports started surfacing.
According to reports, the RBI had 1.987 million ounces of gold till August. Gold valued at $26.7 billion was held in the Forex Reserve as on October 11.
Explaining the fluctuation, the RBI said, “The fluctuation in value depicted in Weekly Statistical Supplement is due to change in frequency of revaluation from monthly to weekly basis and is based on international prices of gold and exchange rates.”
In August, the Central Bank accepted the Bimal Jalam Committee report which recommended the transfer of RBI’s surplus to the government. Analysts said that the central bank has actively started trading in the gold post the adoption of the report. Ajay Kedia of Kedia Advisory said that as the RBI is in surplus of gold, it gives space to the apex bank to sell the yellow metal.
Globally, central banks have been diversifying foreign exchange reserves and have some portion of the reserves in the form of gold. Market analysts also believe that the recent trading and sale of gold is part of the RBI’s treasury activity.
Back in 1991, the RBI had been forced to pledge 67 tonnes of gold to Union Bank of Switzerland and Bank of England when the country was going through an economic crisis.
But this is not yet the case, the RBI has clarified.