RBI initiates swap of old gold with new one: Media Report

RBI initiates swap of old gold with new one: Media Report
The Reserve Bank has undertaken an exercise to swap old gold in its reserves with a new one with a view to standardise the yellow metal stock, reported PTI.

The central bank has asked nominated banks to give quotes for swap with the objective to optimise the management of its reserves, said the media report.

The nominated banks, including State Bank of India, would import gold on behalf of RBI and subsequently the metal would be swapped.

Under the scheme, RBI would exchange relatively impure gold including some dating back pre-independence era from its Nagpur vault and get the equivalent worth of purer yellow metal.

The entire exercises would take place through book entry and without any cash outgo, sources said.

As of June 27, RBI had a gold reserve of worth USD 20.79 billion while total forex reserve USD 315.77 billion.

Dion Global Solutions

Story first published: Monday, July 7, 2014, 9:20 [IST]
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