Former Prime Minister's Economic Advisory Council Chairman Suresh Tendulkar, has said that the gold-buying by the apex bank is symoblic and nothing to do with India's sovereign rating.
"My way to enhance the country's sovereign rating is to enhance the economic strength. Gold is symbolic, but nothing to do with sovereign rating," Tendulkar told reporters on the sidelines of a round table conclave organised by Small and Medium Business Development Chamber of India, here.
The Reserve Bank of India bought 200 metric tonnes of gold from the International Monetary Fund for about $6.7- billion earlier this week.
"When the Dollar is shrinking and the price of gold is increasing, it is better to hold. It might be their (RBI's) rationale. They might have also wanted to enhance the IMF quota," Tendulkar said.
Central banks hold gold, experts say, to ensure economic security, for unexpected needs and as a confidence-booster.
