Not correct: RBI rejects $12-billion gold sale report, says reserves unchanged
Not correct: RBI rejects $12-billion gold sale report, says reserves unchanged
M.U.H
03/06/202619
The Reserve Bank of India (RBI) and the government's PIB Fact Check unit have rejected claims that RBI sold gold worth about $12 billion, after a Bloomberg Economics analysis triggered speculation about a possible reduction in India's gold reserves.
In a clarification issued on Wednesday, the RBI shared reports suggesting it had sold part of its gold holdings were "not correct" and highlighted that its physical stock of gold remains unchanged at 880.52 tonnes.
The clarification came after Bloomberg Economics economist Abhishek Gupta estimated that the RBI may have sold around $12 billion worth of gold in the two weeks ended May 22 while simultaneously purchasing about $7.5 billion of foreign-currency assets. The assessment was based on movements in India's foreign exchange reserve data amid concerns over higher crude oil prices and capital outflows.
However, both the RBI and PIB Fact Check have pushed back against that conclusion.
In a post on X, PIB Fact Check called the claim "FAKE" and cited RBI data to support its position.
"A news report published by Bloomberg states that RBI may have sold gold amounting to approximately USD 12 billion. This claim is FAKE," PIB Fact Check said.
The fact-checking unit added that the share of gold in India's foreign exchange reserves had actually increased in recent months.
According to data cited by PIB, gold accounted for 13.92% of India's forex reserves at the end of September 2025. That figure rose to 16.70% on March 31, 2026, and further increased to 16.85% as of May 22, 2026.
PIB also pointed to RBI's monthly bulletin, which shows that the central bank's physical gold stock remains unchanged.
RBI data support that view.
According to the latest RBI Bulletin, the central bank's gold holdings stood at 880.34 tonnes in March and increased marginally to 880.52 tonnes in April. The quantity remained unchanged thereafter.
The RBI said the public should rely on official information published by the central bank.
The controversy began after Bloomberg Economics analysed changes in the composition of India's foreign exchange reserves during a period marked by rising crude oil prices, pressure on the rupee and foreign capital outflows.
The analysis suggested that movements in reserve assets appeared consistent with a reduction in gold exposure and an increase in foreign-currency assets.
However, reserve experts often note that the value of gold reserves can fluctuate significantly even when the quantity of gold held remains unchanged.
This happens because central banks mark their gold holdings to prevailing international prices and exchange rates. As a result, changes in the dollar value of reserves do not necessarily indicate that gold has been bought or sold.
The RBI's own data show that while the quantity of gold remained broadly stable, the value of its gold reserves moved considerably during recent months as global gold prices fluctuated.
The central bank's gold reserves were valued at around $117 billion in March and later crossed $122 billion as bullion prices strengthened, according to RBI data.
India's gold holdings have steadily increased over the years as the RBI diversified its reserve portfolio. Gold is now one of the largest components of the country's nearly $700 billion foreign exchange reserves.
The latest clarification appears to settle speculation surrounding any outright sale of gold by the RBI, with both the central bank and PIB Fact Check maintaining that India's physical gold stock remains intact.
As of May 22, RBI data show that gold continues to account for a growing share of India's reserve assets, even as global markets remain volatile and investors closely watch the country's external position.
