A one kilogram bar of gold sits in the Sharps Pixley Ltd. showroom in this arranged photograph in London, U.K. (Photographer: Luke MacGregor/Bloomberg)

RBI Makes First Gold Purchase In Nine Years; Buys 8.46 Tonnes In FY18

The Reserve Bank of India has bought 8.46 tonne of gold in financial year 2017-18, the first purchase of yellow metal by the apex bank in almost nine years.

RBI held 566.23 tonne of gold as on June 30, 2018,compared with 557.77 tonne as on June 30, 2017, according to the RBI's latest annual report for 2017-18. “The increase is on account of addition of 8.46 tonne of gold during the year,” the report said.

Last time the apex bank purchased gold was in November 2009, when it had bought 200 tonne of yellow metal from the International Monetary Fund.

Of the 566.23 tonne of gold reserves, 292.30 tonne is held as backing for notes and is shown as an asset of the Issue Department, and the balance 273.93 tonne is treated as an asset of the Banking Department.

The value of gold held as asset of Banking Department rose by 11.12 percent to Rs 69,674 crore as on June 30, 2018, from Rs 62,702 crore from the year-ago period. This increase was primarily on account of depreciation of rupee as against the dollar and the addition of 8.44 tonne of gold during the year, RBI report said.

Also read: RBI Hung Rupee Out to Dry During Emerging Market Selloff