For Prelims: Forex and Gold reserve with RBI, Bank of International Settlements (BIS), IMF.
For Mains: India’s forex reserve and the role of the central bank in its management.
Source: ET
Recently, the Reserve Bank of India (RBI) has undertaken a significant strategic move by bringing back over 100 tonnes of gold from the UK to its domestic vaults.
The RBI’s decision to repatriate over 100 tonnes of gold from the UK to its domestic vaults is a significant strategic move. It reflects the central bank’s focus on logistical efficiency, diversified storage, and confidence in the Indian economy’s stability. This action aligns with global trends among central banks, as they seek to enhance the security of their foreign exchange reserves during uncertain times.
Drishti Mains Question:
Discuss the rationale behind the Reserve Bank of India’s (RBI) increased holding of gold reserves. Also, evaluate the importance of gold reserves for macroeconomic stability in the context of India’s growing economy.
Q. What is/are the purpose/purposes of Government’s ‘Sovereign Gold Bond Scheme’ and ‘Gold Monetization Scheme’? (2016)
Select the correct answer using the code given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3
Ans:(c)
Q. Which one of the following groups of items is included in India’s foreign-exchange reserves? (2013)
(a) Foreign-currency assets, Special Drawing Rights (SDRs) and loans from foreign countries
(b) Foreign-currency assets, gold holdings of the RBI and SDRs
(c) Foreign-currency assets, loans from the World Bank and SDRs
(d) Foreign-currency assets, gold holdings of the RBI and loans from the World Bank
Ans: (b)
Q. Indian Government Bond Yields are influenced by which of the following? (2021)
Select the correct answer using the code given below.
(a) 1 and 2 only
(b) 2 only
(c) 3 only
(d) 1, 2 and 3
Ans: (d)
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