Ghana: India Diversifies Forex, Buys More Gold, Less Treasury Bills
India dey diversify ein foreign exchange reserves, dey buy plenty gold den dey reduce ein holdings for US Treasury bills. Dis move, as Reserve Bank of India (RBI) data show, dey reflect global trend wey countries dey try reduce demma dependence on di US dollar.
India Dey Increase Gold Holdings
According to latest US Department of Treasury den RBI data, India ein investment for US T-bills fall for June as compared to last year, while ein gold holdings rise during di same period. Ebi like say India dey try 'derisk' ein cash stash.
Madan Sabnavis, chief economist for Bank of Baroda, talk say Indian reserves dey see higher buildup of gold reserves, plus diversification for forex currency assets. Dis one dey happen because of geopolitical tensions den trade conflicts wey dey go on for world top.
Why Dis Dey Happen?
Gaura Sengupta, economist for IDFC First Bank, explain say India ein holdings of UST reduce by $14.5 billion over one year, even though UST yields fall. Dis dey show say dem dey diversify forex reserve holdings away from UST. Over di same period, gold reserve holdings increase. Ebi effort to reduce risk of revaluation loss wey dey come from US dollar.
Figures Dey Talk
- India buy approximately 39.22 metric tonnes of gold during di period.
- Gold as part of foreign exchange reserves stand at 879.98 metric tonnes as of June 27, 2025, compared with 840.76 metric tonnes on June 28, last year.
Even though India dey reduce ein T-bill holdings, dem still dey among di top 20 investors for US T-bills, ahead of Saudi Arabia den Germany. Ein holdings stand at $227 billion for June 2025.
Dis move by India fit influence how other countries dey manage demma foreign exchange reserves. E dey show say countries dey look for ways to protect demma economies from global economic uncertainties.