India is bringing its Gold back from UK

✨ India’s gold is back in India ✨

🚢 RBI has shipped 100 tonnes of gold from the Bank of England in the UK to India. This is the first time after 1991 that India is bringing its gold back. This is the first shipment. RBI will continue to bring India’s gold back.

🤔 How did India’s gold end up in the UK?
India mortgaged its gold reserve to raise emergency loans during the 1991 financial crisis. India repaid the loan in November 1991, however, RBI decided to keep the gold in the vaults of the Bank of England. Over the years, RBI continued to buy gold and kept it in the Bank of England. Today, more than half of RBI’s gold is in foreign banks.

🕛 Why it took so long?
Keeping gold in London has its advantages. As London is a mature financial market, it makes trading in gold and leveraging it easy. It also gives the ease of using gold as swaps for international transactions. Moreover, RBI earns a return from its gold deposits on foreign banks.

🤑 Why bring it back now?
After the Russia-Ukraine conflict, Western countries froze Russia’s forex. This worked as a wake-up call for RBI. Moreover, the strength of the Indian economy and the weakness in the UK economy played a crucial part.

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