India has reduced its holdings of US Treasury securities by $15 billion while significantly increasing its gold reserves, as central banks worldwide reduce dollar-denominated assets, according to data released this week.
The Reserve Bank of India’s holdings of US government bonds fell to $227 billion in June 2025, down from $242 billion a year earlier, according to data from the US Treasury Department and India’s central bank.
During the same period, India added 39.22 metric tons of gold to its reserves, bringing its total gold holdings to 879.98 metric tons by late June, up from 840.76 tons a year earlier.
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Despite the reduction in US Treasury holdings, India remains among the world’s top 20 investors in American debt, ahead of countries including Saudi Arabia and Germany. The country’s total foreign exchange reserves stood at $690 billion as of late August.
China, the world’s third-largest holder of US Treasuries, also trimmed its holdings to $756 billion in June from $780 billion a year earlier.
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Gold has gained appeal among central banks as a hedge against inflation, currency fluctuations, and geopolitical tensions. The precious metal cannot be frozen or sanctioned like other financial assets, making it attractive during periods of international uncertainty.
Central banks worldwide have accumulated more gold than US government bonds for the first time since the 1990s, with collective gold reserves reaching approximately 36,344 tons worth over $3.6 trillion at current prices.
Related: Gold Overtakes Euro As Second Largest Global Reserve Asset, Driven by Central Bank Demand
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