Mumbai: The Reserve Bank of India (RBI) had 879.59 metric tonnes (MT) of gold at the end of March 2025. Of this stock, 511.99 metric tonnes were held domestically. While 348.62 metric tonnes of gold were kept in safe custody with the Bank of England and the Bank for International Settlements (BIS), 18.98 metric tonnes were held in the form of gold deposits. The ‘Half Yearly Report on Management of Foreign Exchange Reserves’ published by RBI showed this.
In value terms (USD), the share of gold in the total foreign exchange reserves increased from 9.32 per cent at end-September 2024 to about 11.70 per cent at end-March 2025.
Meanwhile, the forex reserves decreased from $705.78 billion in end-September 2024 to $630.61 billion at end-January 2025, and were at $668.33 billion at end-March 2025. During the period between end-December 2023 and end-December 2024, the external assets increased by $79.7 billion and external liabilities increased by $76.1 billion.
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Forex reserves, or foreign exchange reserves (FX reserves), are assets that are held by a nation’s central bank or monetary authority. It is generally held in reserve currencies, usually the US Dollar and, to a lesser degree, the Euro, Japanese Yen, and Pound Sterling.
The foreign exchange reserves of the country comprise of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs) and the country’s reserve position with the International Monetary Fund (IMF). FCA is the largest component of the forex reserves. It includes the effect of appreciation or depreciation of non-US currencies like the euro, pound, and yen held in the foreign exchange reserves.
At end-March 2025, out of the total FCA of $567.56 billion, $485.53 billion was invested in securities, $45.68 billion was deposited with other central banks and the BIS and the balance $36.34 billion comprised deposits with commercial banks overseas.
At the end of December 2024, foreign exchange reserves cover of imports (on a balance of payments basis) stood at 10.5 months (11.8 months at end-September 2024). The ratio of short-term debt (original maturity) to reserves, which was 19.1 per cent at end-September 2024, increased to 22.0 per cent at end-December 2024. The ratio of volatile capital flows (including cumulative portfolio inflows and outstanding short-term debt) to reserves increased from 67.8 per cent at end-September 2024 to 74.3 per cent at end-December 2024.
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