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Times of India celebrates central bank's buying gold, selling treasuries
Rising Gold Price Vindicates RBI's Investment Plan
By Gayatri Nayak
The Times of India, Mumbai
Monday, November 12, 2018
MUMBAI -- The Reserve Bank of India's gold purchase plan seems to be paying off as the monthly valuation gains have touched an eight-month high with investor demand for a safe haven rallying the yellow metal.
The value of gold in the country's foreign exchange reserves rose 1.7 percent in three weeks from October 12 to November 2 at $20.9 billion. Gold prices rose 2 percent during the same period.
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India's reserves are at $393 billion and gold comprises about 5 percent of the total reserves. ...
With currency markets turning volatile since December after the U.S. Federal Reserve started raising interest rates, which caused foreign investors to pull out their funds from the emerging markets including India, the Reserve Bank, like many other central banks, started buying gold as a hedge against volatile currency markets.
It was for the first time in nine years that the RBI was buying gold. It has bought 9.5 lakh troy ounces of gold since December 2017. ...
RBI has already sold close to $17 billion worth of U.S. treasury securities between April and August, data with the U.S. Treasury Department showed. This could help the central bank rein in mark-to-market losses.
... For the remainder of the report:
https://economictimes.indiatimes.com/markets/commodities/news/rising-gol...
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