RBI: Central Bank Denies Selling Gold Reserves Worth 12 Billion Dollars

The Reserve Bank of India (RBI) has formally dismissed various media reports that suggested the central bank had sold a significant portion of its gold reserves to support the Indian Rupee. 52 metric tonnes. This statement comes as a direct rebuttal to speculative reports claiming that the central bank had offloaded gold worth approximately 12 billion dollars to shield India's foreign exchange reserves from the volatile impacts of the ongoing conflict in West Asia.

Clarification on Media Speculations

The central bank emphasized that the reports circulating in the media are incorrect and urged the general public to rely solely on official information released by the RBI periodically. The Press Information Bureau (PIB) also conducted a fact-check on these reports, further validating the central bank's stance, while according to the official data provided by the RBI, the share of gold within India's total foreign exchange reserves has actually seen a notable increase. 85 percent by May 22, 2026.

Origins of the Baseless Reports

The RBI's reaction was triggered by a report from Bloomberg, which cited data from Bloomberg Economics. The report suggested that India's central bank might have sold a portion of its gold reserves to protect its foreign currency assets from the side effects of the war in the Middle East, while 5 billion dollars in foreign currency assets. The report claimed this decline occurred despite an increase in import duties on the precious metal, which should have theoretically increased the value of the bank's gold and dollar holdings.

Analysis of the Bloomberg Report

The Bloomberg report further argued that this alleged sale highlighted the concerns India faces due to continuous capital outflows and rising oil prices. It suggested that the RBI was prioritizing liquid forex due to the increasing pressure on the Rupee caused by the current account deficit. 52 metric tonnes of gold, with 77 percent of it kept within the country. This was a significant shift from six months prior, when only 66 percent of the gold was stored in India.

Official RBI Data and Financial Reports

In its half-yearly forex report released in April, the RBI stated that the majority of its foreign reserves are held with the Bank of England and the Bank for International Settlements. 58 metric tonnes on March 31, 2025.94 metric tonnes during the 2026 fiscal year, rather than decreasing. 20 metric tonnes were held under the Banking Department.