The Tanzanian Gold Reserve
The Tanzanian central bank has recently launched a domestic gold purchasing program with the goal of boosting the country’s foreign exchange reserves. This program was introduced six months after the Tanzanian government announced plans to establish a gold reserve. The Bank of Tanzania (BOT) governor, Emmanuel Tutuba, revealed in a video update that the institution had already acquired 418 kilograms of gold. However, this gold was subsequently sold, and the generated revenues were transferred to the country’s forex reserves. The central bank aims to acquire a total of six tonnes of gold in 2023.
The Foreign Exchange Shortages
Tanzania has been facing shortages of U.S. dollars, prompting the central bank to take measures to address this issue. The bank reminded participants in the foreign exchange market about their obligations, including working with licensed foreign currency brokers. These steps are intended to maintain macroeconomic stability and protect the financial system.
— Bank of Tanzania (@BankOfTanzania) September 25, 2023
Furthermore, according to a statement from the Tanzanian central bank shared on X (formerly Twitter), local currency will be used for purchasing the gold. The statement reads, “The Bank of Tanzania is purchasing gold from domestic miners and traders in Tanzanian shillings with the aim of bolstering foreign exchange reserves through acquiring and holding gold.” The bank has invited all stakeholders to participate in this program.
Hot Take: Tanzania’s Gold-Buying Program Aims to Strengthen Foreign Exchange Reserves
Tanzania’s central bank has taken a significant step towards boosting its foreign exchange reserves with the launch of a domestic gold purchasing program. By acquiring and holding gold, the Bank of Tanzania aims to address the country’s foreign exchange shortages and promote macroeconomic stability. This initiative involves purchasing gold from local miners and traders using Tanzanian shillings. With plans to acquire six tonnes of gold in 2023, the central bank is actively working towards bolstering its forex reserves. This move highlights Tanzania’s efforts to diversify its reserve assets and strengthen its economic position.
By
By
By
By
By
By