India’s rupee is currently at an all-time low, making it a bastion of the US dollar. The currency is about to fall to the 96 rupee level again, and there are fears that it could plummet to 100 rupees. Everyone fears that the rupee will reach 100 years as the economy is at risk of inflation. The Reserve Bank of India (RBI) has sold $12 billion of gold reserves to protect the rupee, according to a report published by Bloomberg Economics (BE) on Tuesday.
The publication writes that the Reserve Bank of India has drained some of its gold holdings from the aftermath of the Iran war. The sale of $12 billion worth of gold was initiated to prevent the rupee from further depreciating against the dollar. The report also added that RBI increased its foreign currency assets by about $7.5 billion. The RBI has intervened several times since 2024 to protect the rupee.
Reserve Bank of India denies selling gold to protect rupee
After the Bloomberg article came out, the RBI intervened and denied the report. The central bank confirmed that it did not sell gold to support the rupee against the US dollar. The central bank debunked this claim in a formal statement late Wednesday. “The Reserve Bank of India (RBI) has found reports in certain sections of the media regarding the sale of gold by the RBI.”
“The RBI emphasizes that these reports are incorrect. In this connection, it has come to light that the physical stock of gold has been disclosed by the RBI in its monthly report. The latest version is available on the RBI website and the physical stock of gold remains unchanged at 880.52 tonnes.” Read the statement denying gold sales to protect the rupee.
“The public is therefore advised to rely on official information published by RBI from time to time on such matters.” The Press Information Bureau (PIB) also fact-checked the claims of gold sales to Bloomberg. They stressed that India was not selling gold to preserve the rupee against the US dollar. they added “India’s foreign exchange reserves rose from 13.92% at the end of September 2025 to 16.70% on March 31, 2026, and further rose to 16.85% as on May 22, 2026.”
