Latest news with #CentralBanks
Times of Oman
3 days ago
- Business
- Times of Oman
India's forex reserves drop by $1.18bn to $695.49bn, third consecutive weekly decline
Mumbai: India's foreign exchange reserves fell by USD 1.18 billion to USD 695.49 billion for the week ending July 18, marking the third straight week of decline, according to the official data released by the Reserve Bank of India (RBI). In the previous reporting week, the country's foreign exchange reserves fell by USD 3.06 billion to USD 696.67 billion. In the week ending July 18, foreign currency assets, the major constituent of the forex reserves, fell by USD 1.201 billion to USD 587.609 billion, possibly becoming the primary reason for the decline in the forex reserves. The Gold reserves, another major component of the forex, again witnessed an impressive recovery from last week's decline, increasing by USD 150 million to USD 84.499 billion, following the previous week's fall of USD 498 million. India's Special Drawing Rights (SDRs) with the global financial body, the International Monetary Fund (IMF), witnessed another dip of USD 119 million, reaching USD 18.683 billion. Central banks worldwide are increasingly accumulating safe-haven gold in their foreign exchange reserves kitty, and India is no exception. The share of gold maintained by the Reserve Bank of India (RBI) in its foreign exchange reserves has almost doubled since 2021, till recently. In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, the reserves rose by a little over USD 20 billion, touching an all-time high of USD 704.885 billion at the end of September 2024. India's foreign exchange reserves (Forex) are sufficient to meet 11 months of the country's imports and about 96 per cent of external debt, said Governor Sanjay Malhotra while announcing the outcome of the Monetary Policy Committee (MPC) decisions. Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling. The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep Rupee depreciation. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens.
Economic Times
6 days ago
- Business
- Economic Times
Gold price crosses Rs 1 lakh per 10 gm, dampens festive jewellery demand
Gold touched the Rs 1 lakh per 10 gm mark on Wednesday dampening the mood among jewellers who now fear a further dent in sales ahead of the crucial festive season. The prices have crossed this threshold after almost two months. ADVERTISEMENT The yellow metal has gained nearly 2% this week — climbing from Rs 98,791 per 10 gm on Monday to Rs 1,00,502 per 10 gm on Wednesday at the retail end. With a 3% goods & services tax, net consumer price is now Rs 1,03,507 per 10 gm. 'China is heavily buying gold. The Central Banks across the globe too are buying gold. Big investors are also purchasing gold. All these factors are driving the gold prices,' said Surendra Mehta, national secretary of the India Bullion & Jewellers Association (IBJA), the apex industry body. Prices of gold had last touched Rs 1 lakh per 10 gm on April 22, following the trade war between the US and China with the former announcing higher tariffs on too shot up to Rs 1,15,500 per kg on Wednesday from Rs 1,11,000 per kg on Tuesday, a surge of Rs 4,500 per kg in a single day. The precious metals are being boosted by lower dollar index and the US trade tariff uncertainty supporting safe-haven buying, analysts Indian rupee came under pressure following NATO's warning of secondary sanctions on Russian oil imports leading to an additional increase in gold and silver prices locally. India imports both the precious metals and if the rupee comes under pressure then prices go up automatically. ADVERTISEMENT Suvankar Sen, managing director of jewellery chain Senco Gold, said the price rise is forcing consumers to buy lightweight gold jewellery within their budget. 'Volume-wise the drop will be 15%. If the price rise continues, then demand for 18 karat, 14 karat and 9 karat gold jewellery will increase,' he said. The festive season, which starts next month with Raksha Bandhan and continues till Diwali in October, is one of the biggest consumption periods of gold, apart from the wedding season in winter. ADVERTISEMENT India's largest retailer Reliance Retail chief financial officer Dinesh Taluja told analysts last week that the substantial increase in gold prices may have increased bill values (for its jewellery business), but the number of bills have come down. 'The business is on steady growth, but obviously there is an impact on the significant increase in gold prices. In volume terms, the demand for gold has gone down,' he IBJA official said that jewellery sales in Raksha Bandhan will not be good as consumers are not able to accept the price of Rs 1 lakh. In the gold hub Zaveri Bazaar in Mumbai, footfalls have fallen significantly. 'Unless the price settles near Rs 93,000 - Rs 94,000 per 10 gm, demand will not see an uptick,' Mehta said. ADVERTISEMENT Persistently high gold prices have suppressed demand, prompting consumers to defer non-essential purchases and opt for more affordable alternatives such as lightweight, lower-karat, silver or studded Chacko, research head for India at World Gold Council, said the trend of exchanging old jewellery to manage costs continued to gain traction as per market reports. ADVERTISEMENT However, investment-oriented buying may continue, with a growing preference for gold bars, coins and plain gold chains (seen as quasi-investments), which are favoured for their lower fabrication charges. 'As per anecdotal reports, demand has been concentrated in lower-grammage coins, particularly those weighing less than 10gm,' Chacko said. (You can now subscribe to our ETMarkets WhatsApp channel)
Economic Times
6 days ago
- Business
- Economic Times
Gold crosses Rs 1 lakh per 10 gm, dampens festive jewellery demand
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Gold touched the Rs 1 lakh per 10 gm mark on Wednesday dampening the mood among jewellers who now fear a further dent in sales ahead of the crucial festive season. The prices have crossed this threshold after almost two yellow metal has gained nearly 2% this week — climbing from Rs 98,791 per 10 gm on Monday to Rs 1,00,502 per 10 gm on Wednesday at the retail end. With a 3% goods & services tax, net consumer price is now Rs 1,03,507 per 10 gm.'China is heavily buying gold. The Central Banks across the globe too are buying gold. Big investors are also purchasing gold. All these factors are driving the gold prices,' said Surendra Mehta, national secretary of the India Bullion & Jewellers Association (IBJA), the apex industry of gold had last touched Rs 1 lakh per 10 gm on April 22, following the trade war between the US and China with the former announcing higher tariffs on too shot up to Rs 1,15,500 per kg on Wednesday from Rs 1,11,000 per kg on Tuesday, a surge of Rs 4,500 per kg in a single day. The precious metals are being boosted by lower dollar index and the US trade tariff uncertainty supporting safe-haven buying, analysts Indian rupee came under pressure following NATO's warning of secondary sanctions on Russian oil imports leading to an additional increase in gold and silver prices locally. India imports both the precious metals and if the rupee comes under pressure then prices go up Sen, managing director of jewellery chain Senco Gold , said the price rise is forcing consumers to buy lightweight gold jewellery within their budget. 'Volume-wise the drop will be 15%. If the price rise continues, then demand for 18 karat, 14 karat and 9 karat gold jewellery will increase,' he festive season, which starts next month with Raksha Bandhan and continues till Diwali in October, is one of the biggest consumption periods of gold, apart from the wedding season in largest retailer Reliance Retail chief financial officer Dinesh Taluja told analysts last week that the substantial increase in gold prices may have increased bill values (for its jewellery business), but the number of bills have come down. 'The business is on steady growth, but obviously there is an impact on the significant increase in gold prices. In volume terms, the demand for gold has gone down,' he IBJA official said that jewellery sales in Raksha Bandhan will not be good as consumers are not able to accept the price of Rs 1 lakh. In the gold hub Zaveri Bazaar in Mumbai, footfalls have fallen significantly. 'Unless the price settles near Rs 93,000 - Rs 94,000 per 10 gm, demand will not see an uptick,' Mehta high gold prices have suppressed demand, prompting consumers to defer non-essential purchases and opt for more affordable alternatives such as lightweight, lower-karat, silver or studded Chacko, research head for India at World Gold Council, said the trend of exchanging old jewellery to manage costs continued to gain traction as per market investment-oriented buying may continue, with a growing preference for gold bars, coins and plain gold chains (seen as quasi-investments), which are favoured for their lower fabrication charges.'As per anecdotal reports, demand has been concentrated in lower-grammage coins, particularly those weighing less than 10gm,' Chacko said.
Time of India
6 days ago
- Business
- Time of India
Gold price crosses Rs 1 lakh per 10 gm, dampens festive jewellery demand
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Gold touched the Rs 1 lakh per 10 gm mark on Wednesday dampening the mood among jewellers who now fear a further dent in sales ahead of the crucial festive season. The prices have crossed this threshold after almost two yellow metal has gained nearly 2% this week — climbing from Rs 98,791 per 10 gm on Monday to Rs 1,00,502 per 10 gm on Wednesday at the retail end. With a 3% goods & services tax, net consumer price is now Rs 1,03,507 per 10 gm.'China is heavily buying gold. The Central Banks across the globe too are buying gold. Big investors are also purchasing gold. All these factors are driving the gold prices,' said Surendra Mehta, national secretary of the India Bullion & Jewellers Association (IBJA), the apex industry of gold had last touched Rs 1 lakh per 10 gm on April 22, following the trade war between the US and China with the former announcing higher tariffs on too shot up to Rs 1,15,500 per kg on Wednesday from Rs 1,11,000 per kg on Tuesday, a surge of Rs 4,500 per kg in a single day. The precious metals are being boosted by lower dollar index and the US trade tariff uncertainty supporting safe-haven buying, analysts Indian rupee came under pressure following NATO's warning of secondary sanctions on Russian oil imports leading to an additional increase in gold and silver prices locally. India imports both the precious metals and if the rupee comes under pressure then prices go up Sen, managing director of jewellery chain Senco Gold , said the price rise is forcing consumers to buy lightweight gold jewellery within their budget. 'Volume-wise the drop will be 15%. If the price rise continues, then demand for 18 karat, 14 karat and 9 karat gold jewellery will increase,' he festive season, which starts next month with Raksha Bandhan and continues till Diwali in October, is one of the biggest consumption periods of gold, apart from the wedding season in largest retailer Reliance Retail chief financial officer Dinesh Taluja told analysts last week that the substantial increase in gold prices may have increased bill values (for its jewellery business), but the number of bills have come down. 'The business is on steady growth, but obviously there is an impact on the significant increase in gold prices. In volume terms, the demand for gold has gone down,' he IBJA official said that jewellery sales in Raksha Bandhan will not be good as consumers are not able to accept the price of Rs 1 lakh. In the gold hub Zaveri Bazaar in Mumbai, footfalls have fallen significantly. 'Unless the price settles near Rs 93,000 - Rs 94,000 per 10 gm, demand will not see an uptick,' Mehta high gold prices have suppressed demand, prompting consumers to defer non-essential purchases and opt for more affordable alternatives such as lightweight, lower-karat, silver or studded Chacko, research head for India at World Gold Council, said the trend of exchanging old jewellery to manage costs continued to gain traction as per market investment-oriented buying may continue, with a growing preference for gold bars, coins and plain gold chains (seen as quasi-investments), which are favoured for their lower fabrication charges.'As per anecdotal reports, demand has been concentrated in lower-grammage coins, particularly those weighing less than 10gm,' Chacko said.
Zawya
21-07-2025
- Business
- Zawya
Middle East Sovereign Investors recalibrate strategies amid geopolitical uncertainty and market shifts
Fixed income and private credit gain importance as Middle East sovereign wealth funds (SWFs) manage liquidity and diversify exposures Middle East SWFs prioritise China with 60% planning to increase allocations over the next five years Middle East SWFs cautiously increase direct digital asset exposure while navigating regulatory challenges Dubai, UAE – Political and policy decisions have become core drivers of investment strategy, prompting sovereign investors to fundamentally reassess portfolio construction and risk management, according to the thirteenth annual Invesco Global Sovereign Asset Management Study Geopolitical tensions (84%) remain the dominant short-term risks for sovereign wealth funds (SWFs) and central banks in the region, followed by a fallout from the Middle East conflict (68%). An overwhelming majority (96%) of respondents believe that geopolitical rivalry will be a key driver of volatility, while 91% expect protectionist policies to entrench persistent inflation across developed economies. Most notably, 52% of Middle East SWFs now see deglobalisation as a material threat to investment returns, underscoring a marked shift in the market narrative. Invesco's study, a leading indicator on sovereign investor behaviour, draws on the insights from 141 senior investment professionals, including chief investment officers, heads of asset classes, and portfolio strategists, from 83 SWFs and 58 central banks across the world, collectively managing $27 trillion in assets.* Active strategies gain traction alongside foundational passive exposure One of the key shifts in portfolio construction identified in the study is the greater use of active strategies by respondents. On average, Middle East SWFs maintain 78% of their equities portfolio and 77% of their fixed income portfolio in active strategies. The survey shows that 33% of SWFs in the region are planning to increase active equity exposures over the next two years, with 50% doing the same with fixed income. While passive strategies continue to provide efficiency and scale benefits, particularly in highly liquid public markets, active approaches are being used to address index concentration risks, navigate regional dispersion, and enhance scenario resilience in an increasingly fragmented landscape. At the same time, portfolio construction decisions such as asset class, geographic, and factor tilts are increasingly viewed as core expressions of active management. Fixed income redefined and reprioritised Due to a combination of geopolitical shifts and interest rate normalisation, traditional portfolio construction models are being rethought, with many SWFs turning to more dynamic portfolio approaches that includes more fluid asset allocations, enhanced liquidity management, and greater use of alternatives. Within this landscape, fixed income has assumed a new importance within SWF portfolios, becoming the second-most favoured asset class behind infrastructure. On a net basis, 30% of Middle East SWFs plan to increase their fixed income exposure over the next 12 months. 'Amid geopolitical uncertainty and market shifts, investors across the Middle East are recalibrating their strategies,' says Josette Rizk, Head of Middle East and Africa at Invesco. 'Active asset management is growing in prominence due to its adaptability to a rapidly evolving economic environment. While private credit holds on to its popularity, fixed income has rebounded as the region's SWFs diversify exposures.' Private credit takes centre stage as a new diversification tool Private credit continues to gain momentum among SWFs in the Middle East, with 63% accessing the asset class through funds and 50% making direct investments or co-investments. The survey indicates that 50% of SWFs worldwide, including 40% of those based in the Middle East, plan to increase allocations to private credit over the next year. This growing interest reflects a broader rethinking of diversification as traditional stock-bond correlations erode in a higher-rate, higher-inflation environment. Sovereign investors are turning to private credit for floating-rate exposure, customised deal structuring, and return profiles that are less correlated with public markets. Once considered a niche asset class, private credit is now viewed as a strategic pillar of long-term portfolio construction. China remains a high priority in a fragmented emerging market landscape SWFs are taking a more selective approach to emerging markets. Asia (excluding China) is a high priority for 43% of respondents worldwide and 25% in the Middle East. Meanwhile, China is once again an important focus for 28% SWFs globally and 33% in the Middle East, with 60% of the region's SWFs expecting to increase China allocations over the next five years. SWFs are increasingly orientating their China strategies around specific technology sectors, such as AI, semiconductors, EVs, and renewables, with 80% of respondents in the region believing the country's technology and innovation capabilities will become globally competitive in the future. 'Middle East SWFs are focusing a large proportion of their portfolios on Asian economies,' adds Rizk. 'Based on the outcomes of our study, we anticipate rising investment flows between the Middle East and China, with higher growth potential in selected sectors.' Active management is viewed as essential in this environment. Just 25% of Middle East SWFs rely on passive emerging market (EM) strategies, while 73% access EMs through specialist managers, citing the need for local insight and tactical flexibility. Digital assets, continued exploration Digital assets are no longer seen as an outsider topic among institutional investors. This year's study shows a small but notable increase in the number of SWFs that have made direct investments in digital assets – 11%, compared to 7% in 2022. Allocations are most common in the Middle East (22%), Asia Pacific (18%), and North America (16%), in contrast with Europe, Latin America, and Africa, where they remain at 0%. For Middle East SWFs, the biggest barriers to investing in digital assets include regulatory challenges (100%) and volatility (86%). 'Investors are increasingly open to exploring the value digital assets may add to their portfolios,' says Rizk. 'In the Middle East, allocations are growing cautiously as investors balance new opportunities with regulatory challenges and market volatility.' Globally, central banks are simultaneously advancing their own digital currency initiatives, balancing innovation potential against systemic stability considerations. While no central bank respondents in the Middle East have launched a digital currency yet, 33% are considering it, viewing efficiency in payments (100%) and enhanced financial inclusion (44%) as the biggest benefits of central bank digital currencies (CBDCs). Central bank resilience and gold's defensive role Central banks are reinforcing their reserve management frameworks in response to mounting geopolitical instability and fiscal uncertainty. In the Middle East, 67% plan to increase their reserve holdings over the next two years, while 27% intend to diversify their portfolios. Gold continues to play a critical role in this effort, with 63% of central banks in the region expecting to expand their gold allocations over the next three years. Seen as a politically neutral store of value, gold is increasingly viewed as a strategic hedge against risks such as rising U.S. debt levels, reserve weaponisation, and global fragmentation. At the same time, central banks are modernising how they manage gold exposures. In addition to physical holdings, an increasing number are turning to more dynamic tools, such as exchange-traded funds (ETFs), swaps, and derivatives, to fine-tune allocations, improve liquidity management, and enhance overall portfolio flexibility without sacrificing defensive protection. This is expected to continue, with 21% of central banks globally and 25% in the Middle East saying they plan to hold investments in gold ETFs in the next five years, while 19% worldwide and 25% in the region intend to hold gold derivatives. About Invesco Ltd. Invesco is a global independent investment management firm. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed $1.84 trillion in assets on behalf of clients worldwide as of March 31, 2025.
