Context: Central Bank Gold Reserves Survey
The World Gold Council 2026 Central Bank Gold Reserves Survey projects continued gold accumulation by central banks. India’s gold holdings rose to 880.52 tonnes in FY26.
World Gold Council
Established
- 1987
Nature
- Global association of gold mining companies.
- It is not a United Nations agency.
Headquarters
- London, United Kingdom
Functions
- Promotes responsible gold use.
- Publishes data on global gold markets.
- Tracks central-bank gold reserves.
Important Reports
- Central Bank Gold Reserves Survey
- Gold Demand Trends
- Gold Outlook
India’s Foreign Exchange Reserves
Forex reserves are external assets held by the Reserve Bank of India to maintain currency stability and meet external payment obligations.
Components of Forex Reserves
- Holdings of foreign currencies and foreign government securities.
Gold Reserves
- Gold held by RBI as a reserve asset.
- International reserve asset created by the International Monetary Fund.
- India’s readily withdrawable reserve with the International Monetary Fund.
Composition
Foreign Currency Assets
→ Gold Reserves
→ Special Drawing Rights
→ Reserve Tranche Position
Approximate composition:
- Foreign Currency Assets: 85%
- Gold Reserves: 12%
- Special Drawing Rights: 2–3%
- Reserve Tranche Position: 1%
Why Are Central Banks Buying Gold?
- Diversification away from the U.S. Dollar.
- Hedge against inflation.
- Hedge against currency volatility.
- Protection against geopolitical risks.
- Protection against sanctions risks.
- Safe-haven asset during global uncertainty.
