Fact Check: RBI, PIB Refute Report Claiming $12 Bn Gold Sale

The Press Information Bureau (PIB) has issued a clarification following a Bloomberg Economics report that suggested the Reserve Bank of India (RBI) may have sold part of its gold reserves to manage its foreign exchange holdings.

According to PIB Fact Check, the claims that the central bank sold gold worth $12 billion to strengthen its foreign currency reserves are incorrect.

The report had come at a time when India was grappling with a depreciating rupee, a widening trade deficit, and pressure on foreign exchange reserves amid the ongoing crisis in West Asia.

In a press release issued on Wednesday, the RBI stated that "the reports are not correct."

The central bank further clarified that its physical stock of gold remains unchanged at 880.52 metric tonnes as of date.

"Members of the public are, therefore, advised to rely on official information published by RBI from time to time in such matters," the central bank said.

PIB described the report as "fake" and noted that the share of gold in India's foreign exchange reserves has actually increased in recent months.

“According to @RBI, the share of gold in India's foreign exchange reserves rose from 13.92% at end-September 2025 to 16.70% on March 31, 2026, and further to 16.85% as of May 22, 2026,” PIB said in a post on X.

What Did Bloomberg Claim?

In a report published on Tuesday, Bloomberg Economics cited its analysis and data to suggest that the RBI may have sold part of its gold holdings to protect foreign exchange reserves from the impact of the ongoing conflict involving Iran.

The report argued that rising crude oil prices, heightened geopolitical uncertainty, and a worsening current account position had increased pressure on India's external finances.

The rupee has also come under strain as investors shifted capital toward traditional safe-haven assets such as the US dollar and gold.

The rupee has depreciated by nearly 6% so far this year. To limit the pace of the currency's decline and prevent it from approaching the psychologically significant 100-per-dollar mark, the RBI has repeatedly intervened in the foreign exchange market.

Such interventions typically require the central bank to sell dollars from its reserves. According to media reports, the RBI has been selling between $80 million and $800 million daily since the onset of the conflict.

Bloomberg's analysis claimed that the RBI sold approximately $12 billion worth of gold in the two weeks through May 22 while purchasing around $7.5 billion in foreign currency assets.

The report suggested that a decline in gold reserves during the period indicated that the central bank had likely liquidated part of its gold holdings.

The RBI, however, has categorically denied the claim, stating that its physical gold stock remains unchanged.