HYDERABAD: As possession of gold by individuals and converting black money to gold has become a talking point post-demonetisation, former Governor of Reserve Bank of India, Dr YV Reddy on Sunday said that gold cannot be equated to black money. He said that with the repeal of Gold (Control) Act in 1990, gold possessed by people in India cannot be considered as black or white.
The former RBI Governor was speaking on the final day of Hyderabad Literary Festival.
Dr Reddy stressed on the importance of gold as a global currency and spoke about how the International Monetary Fund (IMF) made India pledge its gold reserves in 1991 against providing financial assistance during Balance of Payments crisis, and later in 2006 when IMF was bankrupt, it decided to sell gold to raise money.