The Reserve Bank of India has dismissed a media report that alleged it sold $12 billion worth of gold. The central bank called the story baseless, though it didn't name the outlet. The denial came as markets watch how central banks handle reserves in a volatile currency climate.
What the report claimed
An unspecified media outlet published a claim that the RBI had offloaded a massive chunk of its gold holdings. The figure — $12 billion — would have been one of the largest single gold sales by a central bank in recent years. The RBI didn't address the specifics of the report, only that it's false. No other sources have confirmed the sale, and the central bank's official data hasn't shown any sudden drop in gold reserves.
Why the RBI keeps gold
Gold forms a key part of India's foreign exchange reserves. The central bank describes its gold strategy as focused on economic stability and safeguarding assets, especially during times of currency turbulence. With the rupee under pressure against the dollar in recent months, gold acts as a hedge. The RBI has been steadily buying gold over the past decade, boosting its holdings to reduce reliance on the greenback.
A pattern of denial
This isn't the first time the RBI has refuted market chatter about its gold. In 2023, it similarly pushed back against speculation that it was selling bullion to defend the rupee. The central bank rarely comments on daily or weekly movements in its reserves, but it steps in when unverified numbers get published. The swift denial suggests the $12 billion figure caused enough concern to warrant a public rebuttal.
The exact origin of the report remains unclear. The RBI hasn't said whether it plans to take action against the outlet. For now, the statement stands: no such sale happened.
