.......Already, half of the RBI’s gold is lying in the vaults of Bank of England and the Bank for International Settlements. Bank of England also supplies some of the players from whom Indian banks buy. So, it would mostly be a matter of shifting gold from one shelf to another within the same vault. If the RBI wants to sell off its gold (god forbid!), it can give banks time to call in their loans. The impact on the nation’s current account deficit of replacing foreign suppliers with the RBI could be electric........
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