.........“The argument that a central bank which had diversified its own assets into gold has no moral right to preach against investment/import of gold is missing an important point. A central bank diversifying its dollar reserves into gold is entirely different from private agents in a country having capital controls investing in gold as it has the same effect of allowing such assets to be held in foreign currency,” said G Padmanabhan, Executive Director, RBI in his speech in Thiruvanathapuram on Wednesday............
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1 comment:
RBI’s gold holding as part of the forex reserves the central bank is managing is relatively low. The purchase from IMF sometime back was also not much. As explained by ED, RBI a change in the components of forex reserves does not adversely affect the overall position of forex reserves. Thus, gold acquisition by RBI in exchange of dollar cannot be compared to import of gold for domestic consumption.
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