Tanzania Mandates That 20% of Gold Sales Must Go to Central Bank

Tanzania’s mining regulator has mandated that all gold exporters reserve at least 20% of their gold for sale to the central bank, effective October 1. This directive, part of a new mining law, aims to support the Bank of Tanzania’s (BoT) efforts to diversify foreign reserves amid local currency depreciation. In the previous financial year, the central bank purchased 418 kg of gold and plans to buy 6 metric tons in the current fiscal year. According to the mining regulator’s statement, reserved gold must be submitted to two refineries: Eye of Africa in Dodoma and Mwanza Precious Metals Refinery. While the BoT has not provided specific payment rates, the move is expected to strengthen Tanzania’s foreign exchange reserves, which stood at $5.29 billion in July and can conveniently cover 4.3 months of imports.

SOURCE: BUSINESS INSIDER