“De-Dollarisation Begins at Home: RBI Turns to the Household Gold Strategy”
For the first time in over 11 years, the Reserve Bank of India (RBI) did not purchase dollars in the forex spot market during July. Instead, it sold $2.54 billion to stabilise the rupee, according to official data. While this may appear as a routine intervention, it carries a much deeper meaning in the current global context.
The dollar’s dominance is being increasingly questioned. With the greenback stronger than ever and U.S. trade policies turning more weaponised, central banks worldwide are quietly diversifying away from dollar holdings. China, Russia, Turkey, and several other nations have been aggressively buying gold, treating it as the safest store of value in uncertain times. Now, with India’s latest move, the signs of slow but steady de-dollarisation are beginning to show.
India is already one of the largest holders of gold through its households, which collectively own the biggest private gold reserves in the world. Historically, Indian families have trusted gold far more than paper money, and that instinct is proving correct once again in a global financial system shaken by inflation, debt crises, and geopolitical tensions. The only missing link has been the Indian central bank formally aligning with this age-old strategy. By reducing dollar dependence and strengthening gold and silver reserves, the RBI could follow the time-tested wisdom of Indian households.
China, meanwhile, has gone one step further—encouraging its citizens to buy as much gold as possible, effectively building a dual layer of reserves between households and the state. If India, along with BRICS nations like China, Russia, and others, moves toward pegging currencies to gold, the world may be witnessing the early architecture of a new financial order. Gold, long sidelined by fiat dominance, could once again emerge as the global currency.
The July intervention by the RBI may not have been designed as a political statement, but its timing and direction point to something much larger. If India chooses to move away from the dollar and embrace the safety of gold and silver, it will not only shield its economy from the volatility of U.S. monetary policy but also strengthen the growing coalition of nations seeking a fairer, multipolar financial system.
The world has relied on the dollar for too long. Perhaps the true reset lies not in another fiat currency but in a return to the one store of value that has stood the test of time: gold. And in that future, India is uniquely positioned to lead.