Not ‘treasured’! Why India, China are stacking up gold & trimming US Treasuries exposure
India’s holdings of the US Treasuries have dropped as per the latest data from US Federal Reserve. India’s changing forex reserves mix India Not Just
India’s holdings of the US Treasuries have dropped as per the latest data from US Federal Reserve. India’s changing forex reserves mix India Not Just Buying But Also Moving Gold Back India's Gold Reserves Held Domestically Why is Gold Gaining Prominence in Forex Reserves? What are the likely trends going ahead? Gold reserves expected to increase in next 12 months What are the top reasons for holding gold? Positive change in gold reserves expected over next 5 years Is the World Heading for De-dollarization? Rising prices boost gold's share in global foreign reserves US dollar as a share of global reserve currencies Gold has surpassed US Treasuries to become the world’s largest reserve asset - driven largely by the rise in bullion prices in recent years. But the other reality is that gold as a reserve currency, diversifier and safe haven asset is increasingly gaining prominence in a multipolar world fractured by geopolitics and evolving trade dynamics.India is among major economies that are stepping up purchases of gold, while trimming holdings of US Treasuries. Central banks have increasingly begun viewing gold not only as a hedge against inflation but also as a core store of value. As a result, many have expanded their bullion holdings while reducing their exposure to US Treasuries.A recent World Gold Council report points out that central banks have bought an average of 1,000 tonnes of gold over the past four years. This is double the 500 tonnes average over the preceding decade.India’s holdings of the US Treasuries have dropped as per the latest data from US Federal Reserve. There has been a 22.5% fall from $232 billion in April 2025 to $181 billion in April 2026. In fact, at the current levels the holdings are down to a si year low.Some of the fall that is visible has been partially offset by RBI’s aggressive buying of gold - a trend that has picked up in the last few years.Six years ago, India’s gold reserves stood at 658 metric tonnes which has risen to around 881 metric tonnes as of now - a 33.9% rise!The shift from US Treasuries to gold is a sign of a strategy that is globally becoming a trend in major economies - reducing dependency on dollar denominated assets.At the same time, India is also stepping up efforts to internationalise the rupee. This is being done through trade settlements and currency agreements with several countries.In fact, China is leading this trend. In the last one year, from April 2025 to April 2026, China’s holdings of US Treasuries have come down sharply from $743.6 billion to $651.1 billion - a decline of 12.44%.It is the biggest seller of US Treasuries since January 2025.
The BriefWire