India’s holdings of US Treasury securities fell to $181 billion in April, marking the lowest level in nearly six years, according to data from the US Federal Reserve.
The decline underscores a continued strategic pivot by the Reserve Bank of India (RBI) away from US debt and toward alternative reserve assets, most notably gold.
The reduction in US Treasury exposure was partially offset by a significant increase in bullion purchases.
This reallocation reflects a broader effort by the central bank to diversify its foreign exchange reserves, reducing reliance on the US dollar and mitigating currency risk.
The move aligns with a multi-year trend of emerging-market central banks increasing their gold reserves amid geopolitical uncertainty and shifting global liquidity conditions.
The shift has implications for the US Treasury market, where foreign demand has been a key support factor.