November 3, 2009 4:33 PM

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India's gold reserves shot up by 55%

The Reserve Bank of India's gold stock has shot up by more than 55 per cent with the purchase of 200 tonnes of IMF gold at an estimated cost of 6.7 billion US Dollars. RBI, had tp pledge gold during 1991 crisis with the Bank of England to raise resources to meet external obligations. Finance Minister Pranab Mukherjee said in New Delhi that the RBI has decided to buy some gold and it is normally done from time to time. When asked whether it was a reflection of the growing economic strength of the nation, Mr Mukherjee quipped, one is free to draw the conclusions. RBI has purchased almost half the gold which the IMF plans to sell to raise resources to augment its operations and provide concessional loans to poor countries.

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