Reserve Bank of India Denies Reports of $12 Billion Gold Reserve Sales Amid Economic Pressures
The Reserve Bank of India (RBI) has firmly denied reports suggesting it sold gold reserves worth approximately $12 billion in the two weeks leading up to May 22. This denial comes after Bloomberg Economics published an analysis indicating that the RBI might have offloaded a significant portion of its gold holdings to protect its foreign currency assets amidst the ongoing Middle East conflict. The RBI maintains that its gold reserves remain unchanged at 880.52 tonnes, with the majority held domestically. The Indian Press Information Bureau also labeled the media report as 'fake,' reinforcing the RBI's stance. Despite the recent increase in import duties on gold, which should have bolstered the value of the RBI's bullion holdings, the analysis suggested sales were made to prioritize liquid foreign currency reserves as India faces economic challenges due to rising oil prices and capital outflows. 
