The Central Bank of Tanzania (BoT) has begun to purchase gold from local miners and traders, paying them in Tanzanian shillings.
This strategy is designed to stimulate growth in the mining sector and increase foreign exchange reserves.
Emmanuel Tutuba, the governor of the central bank, revealed that they have already acquired 418kg of gold and have plans to purchase an additional six tonnes of the precious metal in 2023.
“The government, in its (2023/2024) budget, has set aside money to buy gold, and in this year (2023), we are planning to buy six tonnes of gold,” Mr Tutuba said in the video posted on September 22, 2023.
This initiative is a significant move towards diversifying Tanzania’s foreign currency reserves and fortifying the nation’s economy.
“When Central Bank of Tanzania buys this gold, it takes it to the international market and sells it to get US dollars to increase their availability in the local economy,” Mr Tutuba said.