Tanzania boosts its gold reserves by 28 tons
for $3.68 billion
Written by Ziad Abdel Fattah:
The Bank of Tanzania strengthened its reserves gold By purchasing approximately 28 metric tons over the past eighteen months, in a move aimed at supporting international reserves and strengthening the shilling's stability amid global market volatility.
The Governor of the Central Bank of Tanzania, Emmanuel Tutuba, said that the value of gold purchases reached approximately $3.68 billion at current prices, noting that the program is part of the bank's strategy to diversify reserve assets and enhance the economy's ability to withstand external shocks.
Tutuba's statements came during a joint meeting of the International Monetary Fund and the World Bank in Gambia, before the Tanzanian Ministry of Finance published them in an official statement on Wednesday.
The Tanzanian Central Bank begins purchasing in since 2023
The Bank of Tanzania began implementing a gold purchase program for its reserves in 2023, as part of a plan to increase its holdings of the precious metal as one of the most important safe-haven assets.
In support of this policy, the Tanzanian Mining Regulatory Authority issued a decision in September 2024 requiring mining companies and gold exporters to set aside at least 20% of their production for sale to the central bank.
The 10 largest gold-producing countries
Tanzania is among the top 10 gold-producing countries in Africa, giving it a comparative advantage in boosting its precious metal reserves by relying on local production.
Totoba explained that the gold purchase program also contributed to expanding financial inclusion by leading to the opening of over 4,000 new accounts at financial institutions by metal traders and small-scale miners.
Last week, during the announcement of the interest rate decision, the Governor of the Central Bank announced that Tanzania's foreign exchange reserves amount to approximately $6 billion, a level that covers 4.3 months of imports, reflecting the resilience of Tanzania's external financial position.
