As US threatens sanctions over S-400 purchase India's dollar holdings decline even as total reserves grow
The world's second biggest gold consumer continues to replenish
its bullion reserves, a Reserve Bank of India (RBI) report shows. At the
same time, New Delhi is slowly but surely reducing its share of US debt bonds.
The annual report from the Indian financial regulator reveals that
the country followed other BRICS partners in adding physical gold to its
foreign exchange reserves. The RBI reportedly bought 8.46 metric tons
of gold during the last fiscal year ending in March. As of the end of June, the country’s central bank held 566.23 metric tons of gold against 557.77 metric tons a year ago. The RBI purchased gold for the first time in nearly a decade. The regulator acquired 200 metric tons of the precious metal in 2009 shortly after the global financial crisis.
According to the RBI, India’s international reserves rose by five percent from June 2017 to June 2018 in comparison to the 6.3 percent growth seen in the same period in the previous year.
“Diversification of India's Foreign Currency Assets
continued during the year with attention being ascribed to risk
management, including cybersecurity risk. The gold portfolio has also
been activated,” the report added.
Meanwhile, the country’s share of US sovereign debt saw a gradual decline from $157 billion in March to $148.9 billion by May, according to the latest US Treasury report.
Eliminating US sovereign bonds has recently become a trend among
major holders. According to the latest statistics, Russia dumped 84
percent of its holdings during 2018, while Turkey’s share of US
Treasuries fell by 42 percent during the first half of the current year.
At the same time, Japan and China, the biggest holders of the US papers also reduced their shares, albeit insignificantly.
Liberteon
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