Tanzania’s central bank has purchased about 28 metric tons of gold worth roughly $3.68 billion over the past 18 months as part of efforts to strengthen its foreign exchange reserves and support the country’s currency. According to the bank’s governor, the initiative has also encouraged greater participation in the formal financial system, with more than 4,000 new accounts opened by mineral traders and small-scale miners. Since 2024, the Tanzanian government has mandated that gold exporters sell at least 20% of their output to the central bank. The initiative has helped build reserves, supporting domestic monetary stability. One of Africa’s top 10 gold producers, Tanzania currently holds about $6 billion in foreign reserves, equivalent to approximately 4.3 months of import cover, providing a stronger buffer against external economic shocks.
Reuters