The Indian Government Trade Minister, Mr. Anand Sharma feels that the RBI has to examine the possibility of monetizing the gold holdings. At present, the RBI is having 557.7 tonnes of gold and it was clear whether the trade minister was mentioning about the gold with the RBI or with the private parties. This could be done to combat the current account deficit. The devaluation of the INR is the only concern, at this moment and the RBI is taking various stringent moves to control the sliding of the Rupee. In fact, India is in the third position in the world, as far as the current account deficit and the CAD is going to touch the ninety Billion dollar mark.
Mainly because of the CAD, the rupee is unable to recover against the dollar, though it had recovered a little from the record low of 68.82. The Reserve Bank of India has to change its policy, if it plans to monetize the gold holdings, which is not an easy task