RBI Sells Gold to Strengthen Forex Reserves

Amid the ongoing West Asia crisis, India's foreign exchange reserves are coming under pressure, prompting the Reserve Bank of India (RBI) to take corrective measures. To support reserve levels, the central bank has reportedly sold a portion of its gold holdings and converted them into dollars.

According to Bloomberg Economics, the RBI sold gold worth nearly $12 billion (around ₹1.14 lakh crore) during the two weeks ending May 22. Out of this amount, about $7.5 billion was added to the country's foreign exchange reserves. The move is aimed at strengthening reserves and reducing pressure on the Indian rupee.

Meanwhile, the government has tightened silver import regulations as part of its strategy to conserve foreign exchange reserves. Valid authorization documents issued by the Directorate General of Foreign Trade (DGFT) will now be mandatory for silver imports through RBI nominated agencies, approved institutions, or the India International Bullion Exchange. Rising crude oil prices, foreign investor outflows, and increasing inflation are adding pressure on the economy, leading authorities to adopt stricter measures to protect reserves.