BoT Initiated Gold Purchases to Boost Foreign Reserves

SEATTLE (Scrap Monster): The Bank of Tanzania (BoT) announced new initiative to purchase gold, which in turn will help the country to bolster its foreign exchange reserves along with providing much needed boost to its mining sector. The announcement came from Mr. Emmanuel Tutuba, Governor, BoT. As per the new initiative, the central bank has already refined 418 kg of acquired gold.

According to him, the government has already allocated funds in the budget towards purchase of gold. The target for the year is to procure at least 6 tonnes of gold from small-scale, middle-scale and large-scale miners. The intensified gold purchases will help Tanzania to safeguard its wealth against potential currency fall or economic instability.

Governor Tutuba noted that till date the country had only U.S. dollar as foreign exchange reserve. This is for the first time that it has decided to diversify its asset base by including gold as well. It must be noted that the worth of Tanzania’s foreign exchange has been on a steady decline over the past few months, mainly on account of rise in import bills, which more than offset foreign exchange inflows contributed by exports.

Tanzania’s foreign exchange reserves amounted to $5.247 billion as on 31^st July, 2023, which is slightly lower upon comparison with the levels at the end of July last year.

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