RBI sells gold worth Rs 1.14 lakh crore amid West Asia conflict: Report

MUMBAI: The Reserve Bank of India (RBI) has reportedly sold gold worth around Rs 1.14 lakh crore as part of efforts to protect the country's foreign exchange reserves from the economic impact of the ongoing conflict in West Asia. According to a Bloomberg report, the move came at a time when rising global oil prices, the depreciation of the Indian rupee, and large-scale withdrawal of foreign investments were creating challenges for the Indian economy.

Reports also suggest that the RBI has begun efforts to bring some of its gold reserves, currently stored in foreign banks, back to India. The gold sale took place during the week ending on the 22nd of last month. During the same period, India's foreign currency assets increased by about $7.5 billion, the report said.

Analysts believe the decline in the value of the RBI's gold reserves, despite an increase in gold import duties, indicates that a significant quantity of gold was sold. Normally, higher import duties tend to increase the value of gold holdings. India is the world's third-largest importer of crude oil. As a result, the conflict in West Asia has had a major impact on oil imports and has added pressure on the country's economy.