The Reserve Bank of India has reduced its holdings in US Treasury securities in recent months, as per a report by Economic Times. The report says that data released by the US Treasury showed India’s RBI held $190 billion in US bonds at the end of October 2025, down by over $50.7 billion in the same period earlier, which was $241.4 billion.
Overall in 2025, India cut its holdings in US treasury securities by 21%. The change has come despite the 10-year US Treasury bond yield moving from 4 to 4.8%.
The change has occurred while RBI has significantly been increasing its gold holdings in recent months, the report adds. RBI’s current gold reserves are approximately 880.18 metric tonnes. RBI has been in an aggressive gold purchase spree, consistently increasing its reserves. Gold now accounts for 13.6% of India’s total forex reserves, valued at $687 billion, as per reports. Last year, India’s gold reserves were 9.3% of total forex reserves.
The gold purchases by the RBI are also consistent with an emerging trend among peers. China, Brazil, and Saudi Arabia, have all been increasing gold allocations in the recent quarters, indicating a potential dollar volatility and hedging against rising US debt servicing costs which is projected to exceed $10 trillion in cumulative interests soon. In the meantime, the UK, Belgium, Japan, Canada and UAE have increased their holdings in US Treasury.
Experts say that the reduction in US Treasury holdings is more of a portfolio diversification and rebalancing rather than outright de-dollarisation.
