India’s RBI Cut US Debt, Bought Gold Even Before Trump’s Tariffs

The Reserve Bank of India (RBI) has been actively reducing its holdings of US Treasuries and increasing its gold purchases, even before the imposition of tariffs by the Trump administration. This move by the RBI reflects India's efforts to diversify its foreign exchange reserves and reduce its reliance on the US dollar. The article suggests that the RBI's decision to shift away from US Treasuries and towards gold is a strategic move to mitigate the risks associated with a potential decline in the value of the US dollar. This shift in investment strategy is also seen as a response to the ongoing trade tensions between the US and India, as well as the broader global economic uncertainty. The article provides insights into India's evolving approach to managing its foreign exchange reserves, with a focus on reducing exposure to a single asset class and diversifying its portfolio to enhance long-term stability and resilience.