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According to local media reports, the Reserve Bank of India has repatriated 100 tonnes of gold that was held in the vaults of the Bank of England. The operation, carried out in special circumstances due to the quantity of gold moved, may be repeated as India seeks to hold more gold domestically for logistical reasons and diversified storage.
The Reserve Bank of India (RBI) has repatriated 100 tonnes of gold previously held in the U.K., in the vaults of the Bank of England. Reports from the Times of India indicate that this operation is the first of its kind since 1991 when a similar amount had to be moved abroad due to a crisis in the foreign payments balance.
Given the large amount of bullion being moved, the operation involved a logistic challenge. Transportation had to include a special permit for the gold to be moved across customs, and specialized aircraft and security had to be implemented.
The repatriated gold will now be held in the RBI vaults on Mumbai’s Mint Road and Nagpur. A source from the bank indicated that this was part of a process that reviews the bank’s holdings and examines the storage possibilities for these assets. “Since stock was building up overseas, it was decided to get some of the gold to India,” a bank official stated.
According to another bank source, this shows how India has improved its economic and financial standing compared to several years ago. The source stated:
It shows the strength of the economy and the confidence, which is in sharp contrast to the situation in 1991.
Official sources stressed that a similar transaction to move roughly the same amount of gold might repeat in the coming months, as India seeks to hold more of its gold holdings domestically.
Countries like Venezuela faced difficulties repatriating gold assets before. The nation is currently embroiled in a legal battle with the Bank of England as the institution has denied control of these assets to Nicolas Maduro’s administration.
