NextFin news, New Delhi, Monday – India has reduced its investments in US Treasury bills to $227 billion as of June 2025, down from $242 billion in June 2024, while simultaneously increasing its gold reserves to 879.98 metric tons, according to recent data from the US Treasury Department and the Reserve Bank of India (RBI).
This strategic move, reported on Monday, reflects India's effort to diversify its foreign exchange reserves and mitigate risks associated with fluctuations in the US dollar and uncertainties in the American economy. The RBI data shows that India purchased approximately 39.22 metric tons of gold during this period, raising its total gold stock from 840.76 metric tons in June 2024.
Despite the reduction, India remains among the top 20 investors in US Treasury bills, ranking ahead of countries like Saudi Arabia and Germany. Experts such as Madan Sabnavis, Chief Economist at Bank of Baroda, and Gaura Sengupta, Economist at IDFC First Bank, attribute this shift to growing geopolitical tensions and the desire to reduce dependency on US financial instruments.
The move aligns with a global trend where central banks diversify reserves away from the US dollar into other currencies and gold. According to international reports, the US dollar's share of global allocated exchange reserves declined to 57.8% at the end of 2024, the lowest since 1994, as countries seek safer and more stable assets.
India's decision to increase gold holdings provides a 'golden hedge' against global financial uncertainties, enhancing the safety and stability of its foreign reserves amid changing geopolitical and economic landscapes.
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