RBI and Gold

RBI should have all its gold in India.

The Indian Express of 11/5/2020 has reported that total holdings of the yellow metal at 653.01 tonnes, RBI gold reserves up 40.4 tonnes in 2019-20, more than half of total holdings held overseas. Of these 360.71 tonnes was in Bank of England and Bank for International Settlements.

RBI should get this gold back to India immediately. There is no such thing as safe custody in Bank of England. When UK went against Venezuela’s President Nicolas Maduro and recognised Juan Guaido as Venezuela’s Acting President it refused to return Venezuela’s gold which was in Bank of England’s custody. RBI should get back its gold from UK and every other place.

Some days back it was reported on Kaiser Report that many have sold same gold multiple times and if all the buyer’s demand their gold at one time the sellers do not have gold to give them. RBI should demand gold wherever it has bought it.

Bank for International Settlements was established in 1930. It has 62 Central Banks as members. Its head office is in Basel and two offices are in Hong Kong and Mexico City. Its Board of Directors has 18 Directors. Central Bank Governors of Belgium, France, Germany, Italy, UK and USA are ex-officio Directors. These six Directors may jointly appoint one other member of their nationality. Eleven Governors of other member banks are elected as members. RBI’s Shaktikanta Das is a Director of BIS.

In UN Security Council five Permanent Members dominate with veto power. In BIS six countries with seven Directors dominate. IN UNSC and BIS, USA dominates more than others. India should take back its gold with BIS.

India should not have money in foreign banks. On 20/4/2020 Venezuela’s Central Bank accused USA of vulgar plundering after it transferred Venezuela’s 342 million dollars from Citibank account to Federal Reserve.

Updated: May 11, 2020 — 11:48 am

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