The share of gold in India’s international trade reserves rose to simply over 7% on the finish of March 2022, from 5.88% on the finish of September 2021, the Reserve Bank of India (RBI) stated in a report launched on Thursday. At end-March 2022, the RBI held 760.42 metric tonne of gold (together with gold deposits of 11.08 metric tonne). “While 453.52 metric tonne of gold is held overseas in safe custody with the Bank of England and the Bank of International Settlements (BIS), 295.82 metric tonne of gold is held domestically,” the central financial institution stated in its half-yearly report on international trade reserves.
The worth of foreign exchange reserves fell throughout the half-year interval beneath evaluation to $607.31 billion on the finish of March 2022 from $635.36 billion on the finish of September 2021. Movements within the international foreign money property happen primarily on account of buy and sale of international trade by the RBI, revenue arising out of the deployment of the international trade reserves, exterior assist receipts of the central authorities and adjustments on account of revaluation of property. At the tip of December 2021, international trade reserves cowl of imports (on steadiness of funds foundation) declined to 13.1 months from 14.6 months at end-September 2021.
The ratio of short-term debt (authentic maturity) to reserves, which was 16.5% at end-September 2021, elevated to 18.1% at end-December 2021.The ratio of risky capital flows (together with cumulative portfolio inflows and excellent short-term debt) to reserves elevated from 64.1% at end-September 2021 to 65.0% at end-December 2021.
Source: www.financialexpress.com”