The Indian government has dismissed reports claiming the Reserve Bank of India sold gold worth 12 billion dollars to support foreign exchange reserves, calling the allegations inaccurate.

BulletsIn

• The Indian government has denied reports suggesting that the Reserve Bank of India sold gold reserves to protect the country’s foreign exchange position.
• Officials described the claims regarding large-scale gold sales by the central bank as false and not supported by official information.
• The reports were based on an analysis by Bloomberg Economics that examined publicly available financial and reserve data.
• According to the analysis, the Reserve Bank of India may have sold gold worth approximately 12 billion dollars during the two weeks ending May 22.
• The report suggested that the alleged gold sales were intended to shield foreign currency reserves amid external economic pressures.
• Market concerns were linked to global uncertainty and tensions arising from the Iran-United States conflict during the period under review.
• Government sources rejected the interpretation of reserve data and maintained that claims of such gold transactions were incorrect.
• The development highlights the importance of official confirmation when assessing changes in central bank reserve management and financial policy decisions.