Kejriwal Questions Government on Gold Reserves Amid Currency Concerns
Arvind Kejriwal has raised serious questions regarding the Indian government's alleged sale of gold reserves to bolster foreign currency assets as the rupee weakens. He demands clarity on the economic situation, expressing concerns about the implications of such actions. With the Monetary Policy Committee meeting approaching, discussions on interest rates and inflation are intensifying. SBI Research suggests that despite economic pressures, raising the repo rate may not be necessary. This article delves into Kejriwal's statements and the broader economic context.
| Jun 3, 2026, 14:39 IST
Kejriwal Raises Concerns Over Gold Sales
The national convenor of the Aam Aadmi Party, Arvind Kejriwal, has expressed his concerns regarding reports suggesting that the Indian government may have sold part of its gold reserves to support foreign currency assets as the rupee weakens against the US dollar. At the time of reporting, the rupee was trading at 95.691 per dollar, reflecting a 0.45% increase.
In response to claims that the Reserve Bank of India (RBI) sold some gold reserves amid geopolitical pressures related to the Iran conflict, Kejriwal demanded clarification from the government regarding the state of the economy. In a post on social media, the former Chief Minister of Delhi questioned the veracity of the reports and expressed concern about the implications of such actions.
He wrote, "Is this news true? Is the country selling its gold? Has the government become so impoverished? Over the past 76 years, the nation has faced numerous challenges, but gold has never been sold. Does this indicate that the situation is dire? Why isn't the government informing us? What is the state of the country?" He further stated that while Modi claims he will just take his belongings and leave, the citizens must remain and live in this country.
These remarks come ahead of the Monetary Policy Committee (MPC) meeting that began on June 3, where discussions on RBI's monetary policy are ongoing. The six-member committee will announce its policy decisions on June 5 after considering interest rates, inflation trends, and broader economic conditions. Meanwhile, SBI Research has argued that despite pressures on the rupee, high crude oil prices, and global uncertainties, there is no need to raise the repo rate. Instead, it suggested that the central bank might rely on short-term interest rate measures and liquidity management strategies.
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