Full circle: India buys 200 tons gold from IMF
Economy • November 2009 • Views: 232
More than 18 years after New Delhi pawned 67 tons of gold to tide over a balance of payments crisis, the Reserve Bank of
India has bought thrice that amount of gold from the International Monetary Fund to diversify its assets.
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For India, the purchase, apart from signaling that its economy has come full circle, is a way of spreading its assets which are said to be currently over-weighted with foreign currency, mainly in the form of sovereign US Treasury bonds. In other words, it is a hedge against a falling dollar.