India’s rupee is at the receiving end of the US dollar as the currency is now at its all-time low. It is close to falling to the 96 level again, and fears are rife that it could plummet to 100. The rupee hitting a century is what everyone dreads, as the economy risks inflation. A report from Bloomberg Economics (BE) published on Tuesday claims that the Reserve Bank of India (RBI) sold $12 billion in gold reserves to safeguard the rupee.
The publication wrote that the RBI offloaded a portion of its gold holdings from the fallout of the Iran war. The $12 billion in gold sell-off was initiated to protect the rupee from falling further against the US dollar. The report also added that the RBI added approximately $7.5 billion to its foreign currency assets. The RBI has stepped in several times to protect the rupee since 2024.
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Reserve Bank of India Denies Selling Gold To Safeguard the Rupee
After the Bloomberg story was out, the RBI stepped in and denied the report. The central bank confirmed that they did not sell gold to support the rupee against the US dollar. The central bank debunked the claims in a statement officially published late Wednesday. “The Reserve Bank of India (RBI) has come across reports in certain sections of the media about RBI’s sale of gold.”
“The RBI emphasizes that these reports are not correct. In this context, it is clarified that the physical stock of gold is disclosed by RBI in its Monthly Bulletin. The latest edition is available on the RBI website, and the physical stock of gold remains unchanged at 880.52 tonnes as on date,” read the statement denying the gold sale for the rupee’s protection.
“Members of public are, therefore, advised to rely on official information published by RBI from time to time in such matters.” Also, the Press Information Bureau (PIB) fact-checked Bloomberg on their gold sell-off claims. They highlighted that India did not sell gold to nurse the rupee against the US dollar. They added that “India’s foreign exchange reserves rose from 13.92% at end-September 2025 to 16.70% on March 31, 2026, and further to 16.85% as of May 22, 2026.”