Tanzania Acquires 28 Tonnes of Gold in Strategic Shift Away from US Dollar

The Bank of Tanzania has made a significant shift in its reserve policy by acquiring 28 tonnes of gold, worth approximately $3.68 billion, over the past 18 months.

This move is part of the Domestic Gold Purchase Programme, which requires large-scale gold mining operations to sell at least 20% of their refined production directly to the central bank.

The programme has not only stimulated domestic gold production but also integrated thousands of artisanal miners into the formal economy, with over 4,000 new commercial bank accounts opened by mineral traders.

The Bank of Tanzania's Governor Emmanuel Tutuba confirmed that this strategy allows the government to build strategic assets using local currency rather than expending precious foreign exchange to buy dollars.