New Delhi : In a first, the Reserve Bank of India(RBI) has begun selling its gold on high reserve. In the apex bank's business year July 2018 - June 2019 it has sold gold amounting to $1.15 billion.
The move is largely viewed as a forced one, from RBI's recent decision to transfer Rs 1.76 lakh crore to the government, as per the Bimal Jalan committee's recommendations.
In August, the apex bank accepted the Committee's report in which the controversial advisory stated that, after providing for risk buffers the entire surplus be transferred to the government.
Statistical supplement data from RBI shows how it sold gold worth $2 billion in 6 out of 12 months of banking year July 18 - June 19. This indicates hike in sale rate, especially as gold from high reserve worth $1.15 billion was sold in four months.
The Jalan committee was set up last year, following debate over sharing RBI surplus with the government to tide over deficit.
According to RBI data, the value of gold in the country's forex reserves stood at $26.8 billion , as on Friday.
Globally, the central banks are diversifying foreign exchange reserves by holding some portion in gold. India has been buying gold on and off since 2017, close to 2 million troy ounces since then. While most of it is bought from open market, some of it comes from confiscation of smuggled gold.
Some lobbies are of the view that the shell-out to govt might be from some of its recent buys.
