THIS govt company in HUGE debt, defaults on bank loans worth whopping Rs...
Donald Trump makes BIG proposal to Ukraine over Russia war, asks Zelenskyy, 'Can you hit...'
DNA TV Show: US President Donald Trump gives Putin 50-day deadline to end war with Ukraine
Sidharth Malhotra, Kiara Advani become parents to a baby girl
Mukesh Ambani's Reliance's BIG win as Delhi HC directs e-commerce platforms to...
Satyajit Ray's ancestral home in Dhaka to be demolished by Bangladesh govt? Mamata Banerjee says...
UIDAI shares BIG update on children above 7 with Aadhaar: 'To face risk of...'
Meet woman who started as trainee, will now become CEO of..., won major award at Cannes, she is...
EAM Jaishankar issues BIG statement during first China visit in 5 years: 'The three evils...'
Golden Temple receives bomb threat again, second RDX email in 24 hours, probe underway
Rs 10000000000: Indians losing huge amount of money every month due to...
ITR Filing AY 2025-26: Last date NOT same for all, check your date if you are...
What is non-veg milk? Know its connection with India-US trade talks
India to spend Rs 60000 crore on this fighter jet, cheaper than Rafale, F-35, it is loaded with...
LILPEPE Crypto Price Prediction 2025, 2026 – 2030: Little Pepe Price To Hit $0.50 Soon?
US-India tariff deal soon? THESE are main stumbling blocks, India may face increased tariff of Rs...
Nimisha Priya case: One day before execution, BIG relief for Kerala nurse jailed in Yemen
Axiom-4 Dragon spacecraft lands safely on Earth, PM Modi welcomes Shubhanshu Shukla
After Kiara Advani, Vikrant Massey quits Ranveer Singh-starrer Don 3; here's why: Report
Will India-China relations improve further after S Jaishankar meets Chinese President Xi Jinping?
RCB star bowler Yash Dayal gets BIG relief in sexual exploitation case, Allahabad HC orders...
Producer-actor Dheeraj Kumar passes away at 79
Amaal Mallik says Anu Malik ruined his father Daboo Malik’s career: 'My dad dealt with...'
Elon Musk's Tesla opens first India showroom in Mumbai's BKC: Project took ... days to be completed
SCO Meet: S Jaishankar meets Chinese President Xi Jinping, first since 2020 Galwan clash
BSE receives bomb threat, police launch search operation
Zomato boss Deepinder Goyal ropes in Shah Rukh Khan, Jasprit Bumrah, AR Rahman for..., watch
In 2nd such incident in 2 days, Delhi's St Stephen's College, school in Dwarka receive bomb threats
Storm, heavy rains batter parts of US: What is reason behind New Jersey, New York floods?
Shubhanshu Shukla to return from ISS today: When and where to watch Axiom 4 touchdown live
Haryanvi singer Fazilpuria targeted in roadside firing in Gurugram
Kavya Maran makes BIG change in SRH, appoints this former India speedster as..., he is...
Elon Musk's Grok inks deal worth $200 with Pentagon amid fallout with Donald Trump
UPSC CSE Mains 2025 schedule out, to be held on THESE dates, check full timetable
Amritsar’s Golden Temple receives bomb threat, email says...; police beef up security
Watch Shubhanshu Shukla showcasing stunning zero-gravity experiments on board ISS using...
INDIA
Finance Minister Nirmala Sitharaman on Monday clarified in the Lok Sabha that India's rising gold reserves, including those held by the Reserve Bank of India (RBI), is not intended to replace any international currency.
Gold has been experiencing a strong surge lately, with its price climbing over 10% so far in 2025. On Monday, gold prices spiked more than 1.5%, reaching a record high. This increase is driven by heightened demand for safe-haven assets amid concerns over a potential global trade war following US President Donald Trump's announcement of new tariff plans.
Trump revealed on Sunday that he intends to impose an additional 25% tariff on all steel and aluminum imports. He also stated that he would introduce reciprocal tariffs this week, matching rates imposed by other countries and applying them immediately. Gold is seen as a secure investment during times of economic and geopolitical uncertainty.
Finance Minister Nirmala Sitharaman on Monday clarified in the Lok Sabha that India's rising gold reserves, including those held by the Reserve Bank of India (RBI), is not intended to replace any international currency.
She responded to Congress MP Manish Tiwari's concerns about whether the global shift towards gold signaled a move away from the US dollar as a dominant settlement mechanism. The Finance Minister said, "gold" is also kept in the Reserve Bank and gold is also being bought by the Reserve Bank. But beyond that, as regards an international currency or potential currency, there is not much for me to comment at this stage".
Congress MP Tiwari stated that since the US abandoned the gold standard in 1971, gold had lost its significance as a major financial asset. However, in recent years, central banks worldwide have increased their gold holdings. From constituting only 6 per cent of global reserves in 2006, gold now makes up about 11 per cent in 2024. Countries like China, India, Poland, and Turkey have been among the most aggressive buyers, and domestic gold prices in India have surged as well.
He asked "this shift away from the dollar to gold, does it indicate a renewed search for an alternative international settlement mechanism being cost the dollar?" Responding to this, Sitharaman acknowledged that gold demand in India remains strong and has even grown. She attributed this to the traditional preference of Indian households, small businesses, and women for gold as a secure and liquid investment.
"I think it is very typical of India, particularly for households of small businesses and, it is normally said, women, but general households also, and women also, to invest in gold because they think it's far more secure and far more liquid" she said. Regarding the RBI's gold purchases, she confirmed that the central bank is accumulating gold to maintain a balanced reserve portfolio.
While the US dollar has been a dominant component of India's foreign exchange reserves, the RBI also holds reserves in other currencies and gold. She stressed that the move is part of a strategy to diversify reserves rather than an indication of India shifting away from the dollar or pushing for an alternative international settlement mechanism.
The statement comes at a time when global discussions around de-dollarization have gained momentum, with some countries exploring alternatives for trade and reserves. However, Sitharaman made it clear that India's increased gold accumulation does not signal any such shift.
(inputs from ANI)