Reserve Bank of India almost doubled its gold purchases to 65 tons in FY22 increased its total ownership to 760.42 tons, as part of its asset diversification policy with gold that showed better performance as a safe asset class during the new global financial turmoil. -New

The value of RBI gold ownership rose by 30% to 3,22 Lakh Crore RS. Of this number, gold worth Rs 1.25 Lakh Crore was held as an asset of the RBI and Gold Problem Department (including gold deposit) worth RS 1.97 Lakh Crore was held as an asset of the Department of Banking.

This higher assessment is due to additional purchases and also due to an increase in gold prices and the depreciation of rupees of the dollar, RBI said in an annual report.

Observations in various phases of different financial cycles imply that in addition to providing greater risk hedging against US dollars, gold performance as a safe asset between other asset classes has also increased in the new financial cycle phase,” RBI said.

RBI domestic assets are 28.22% while foreign and gold currency assets (including gold and gold deposits held in India) are 71.78% at the end of March compared to 26.42% and 73.58% each year each then.

At the end of March, RBI held 760.42 metric tons of gold (including 11.08 metric tons of gold deposits). From this, 453.52 metric Tons of gold were held abroad with the Bank of England and the Bank of International Settlements (BIS), while 295.82 metric tons of gold were held locally.

The gold part in total foreign exchange reserves increased to 7% at the end of March from around 5.88% six months before that.