India Dismisses Allegations of Massive Gold Reserve Sell-Off
The Indian Finance Ministry has formally refuted recent media claims suggesting that the Reserve Bank of India (RBI) offloaded $12 billion worth of gold to stabilize its foreign exchange reserves. Speculation had circulated that the central bank sold off a significant portion of its precious metal holdings over a two-week period in May to mitigate pressure on the rupee and rising import costs. However, government sources have clarified that these reports are entirely baseless.
Official data from the RBI’s 2025-26 Annual Report contradicts the rumors, revealing that the bank’s gold reserves actually saw an increase rather than a decline during the fiscal year. According to the report, India’s total gold holdings grew from 879.58 metric tonnes to 880.52 metric tonnes as of March 31, 2026. Furthermore, the total value of these reserves surged to $115.40 billion—up from $78.18 billion the previous year—largely due to a rise in global gold prices and the rupee's exchange rate fluctuations. With foreign exchange reserves standing strong at $691.11 billion, the RBI’s audited balance sheet confirms that the central bank’s gold strategy remains one of accumulation rather than liquidation.