The Reserve Bank of India’s holding in US Treasuries has fallen below $200 billion reflecting a strategic shift in the banking regulator’s reserve management.
Data released by the US Department of Treasury shows that India held $190 billion gold reserves at the end of October 2025, down $50.7 billion in the same period a year earlier. During the same time, RBI added gold to its reserves. Central bank’s gold holding rose to 880.18 metric tonnes at the end of October 2025 from 866.8 metric tonnes a year ago, RBI data shows.
In the same period, the forex reserves have remained stable around $685 billion.
The United Kingdom, Belgium, Japan, France, Canada and UAE are among the countries which increased their exposure in the US Treasury, while China, Brazil, India, Hong Kong and Saudi Arabia lowered their holdings on a year-on-year basis, data shows.
Gold forms 13.6 per cent of RBI’s forex reserves as on September 26, compared with 9.3 per cent a year ago, when total reserves were at a record high.
Safe Haven
Globally, central banks have continued to add gold to their reserves despite the rally in gold prices as bullion is seen as a safe haven during economic uncertainty. “India’s lower holdings of US Treasury bills reflect the RBI’s push to diversify its foreign exchange reserves by buying more gold. Rising fiscal pressures in advanced economies have pushed up global bond yields, increasing the risk of valuation losses on reserves held in Treasuries. To limit this risk, central banks, including the RBI, are shifting part of their reserves away from US Treasuries and towards gold,” said Gaura Sengupta, chief economist at IDFC First bank.
Total investments by central banks in US treasury bills are $9.24 trillion at the end of October 2025, with Japan holding the highest at $1.2 trillion, followed by the UK and China.
