JavaScript is off. Please enable to view full site.

India launches first international bullion exchange to bring transparency

India launches first international bullion exchange to bring transparency

Saturday, July 30, 2022, 09:54 GMT+7
India launches first international bullion exchange to bring transparency
Gold bars are displayed at a gold jewellery shop in the northern Indian city of Chandigarh April 11, 2012. Photo: Reuters

AHMEDABAD, India -- India launched its first international bullion exchange on Friday as the world's second biggest consumer of the precious metal tries to bring transparency to the market for the precious metal.

India International Bullion Exchange (IIBX), based at Gujarat International Finance Tec-City, or GIFT City in western Gujarat state, could lead to standard gold pricing in India and make it easier for small bullion dealers and jewellers to trade.

"We would have better price negotiation strength with the launch of this bullion exchange," India's Finance Minister Nirmala Sitharaman said.

Gold is tightly regulated in India and currently only nominated banks and agencies approved by the central bank can import gold and sell to dealers and jewellers.

"IIBX with its technology-driven solutions, will facilitate transition of Indian bullion market towards a more organised structure by granting qualified jewellers a direct access to import gold directly through the exchange mechanism," the exchange said in a statement.

China, the top gold consumer, runs such a bourse, where all domestic production and imported gold has to be bought and sold.

India imported 1,069 tonnes of gold in 2021, up from 430 tonnes a year ago.

The Multi Commodity Exchange (MCX) and National Commodity and Derivatives Exchange (NCDEX) offer gold futures contracts in India, but there wasn’t any physical exchange to buy gold.

"India's efforts to monetise gold will also derive tremendous support from a transparent bullion trading system in GIFT City," said Somasundaram PR, regional chief executive officer of WGC's Indian operations.

Indian households own an estimated collective 25,000 tonnes of gold, which passes from one generation to the next. New Delhi has been trying to monetise these holding to reduce the imports.



Read more




‘Taste of Australia’ gala dinner held in Ho Chi Minh City after 2-year hiatus

Taste of Australia Gala Reception has returned to the Park Hyatt Hotel in Ho Chi Minh City's District 1 after a two-year hiatus due to the COVID-19 pandemic

Vietnamese woman gives unconditional love to hundreds of adopted children

Despite her own immense hardship, she has taken in and cared for hundreds of orphans over the past three decades.

Latest news