Tanzania's Gold Rush: Central Bank To Buy Six Tonnes Of The Yellow Metal

The Bank of Tanzania has embarked on a new venture to enhance the nation's foreign exchange reserves by procuring gold using the Tanzanian shilling.

This initiative, announced on Sep. 25, aims to amass a significant six tonnes of gold from local miners and dealers during 2023.

As the global financial landscape undergoes rapid changes, the significance of such moves by central banks cannot be understated. This topic, among others, will be a central discussion at Benzinga's Future of Digital Assets conference on Nov. 14.

The Tanzanian central bank's recent endeavor, termed the "domestic gold purchasing program," was initiated roughly half a year after the Tanzanian government disclosed its intentions to establish a gold reserve, The Chanzo Initiative reported.

In a video briefing preceding the official announcement, Emmanuel Tutuba, the Bank of Tanzania's governor, revealed that the bank had already secured approximately 418 kilograms of gold.

This acquired gold was later sold, and the resulting funds were incorporated into the nation's foreign exchange reserves.

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Facing a scarcity of U.S. dollars, Tanzania has been proactive in addressing the situation. The central bank has emphasized the importance of engaging with licensed foreign currency brokers to those operating in the foreign exchange market.

Such measures, the bank stated, are crucial to "foster macroeconomic stability and safeguard the stability of the financial system."

In a statement released through microblogging website X, the Bank of Tanzania elaborated on its payment method for the gold purchases, stating, "The Bank of Tanzania wishes to inform the public of the commencement of the domestic gold purchasing program which aims to bolster foreign exchange reserves through acquiring and holding gold."

The bank is therefore purchasing gold from domestic miners and traders in Tanzanian shillings.

The bank also extended an invitation to all relevant parties to participate in this initiative.

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