InvestorQ : Why RBI is planning to sell Gold?
ishika Banerjee made post

Why RBI is planning to sell Gold?

Answer
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11 months ago


Recently, there have been reports in the newspapers that the RBI has been selling gold and that led to some panic in the markets as the central bank resorts to gold selling only if it is dire straits. However, the RBI has clarified that this more due to valuation period differentials and part of the normal treasury operations of the central bank. RBI has also clarified that the fluctuation depicted in Weekly Statistical Supplement (WSS) of the Reserve Bank of India are due to change in frequency of revaluation from monthly to weekly basis and is based on international prices of gold and exchange rates.

In fact, the ET had set the cat among the pigeons with a small and rather innocuous report. According to a report by The Economic Times, the Reserve Bank has been selling gold from its reserves. The report said RBI had purchased gold worth $5.1 billion and sold about $1.15 billion of gold since the start of its business year in July. The value of gold in the country’s forex reserves amounted to $26.7 billion in the second week of October. It was the sale of $1.5 billion worth of gold that came to the limelight, although RBI is still a net buyer of gold.

On balance, it looks like there is not much to worry about. RBI appears to have started trading in gold more actively since adopting the Bimal Jalan Committee report on its economic capital framework. That is more of treasury operations of RBI and that is common among central banks around the world.


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sagar answered.
11 months ago


causes of world economic crisis that's y RBI sell gold for stability in indian mrkt