India bets on gold: RBI cutbacks in US treasury bills signal diversification push

News Snapshot:

India is reducing US Treasury holdings and adding gold to diversify reserves and lessen reliance on the dollar India’s central bank is reshaping its foreign exchange reserve strategy by reducing exposure to US Treasury bills (USTs) while simultaneously increasing gold holdings. Recent data from the Reserve Bank of India (RBI) and the US Department of Treasury highlights this shift, highlighting a broader global effort to diversify away from the dollar-dominated system. According to a report in The Economic Times, India’s holdings of US Treasuries fell to $227 billion in June 2025, down from $242 billion a year earlier. Despite this...