Dar es Salaam. The Bank of Tanzania (BoT) is on the verge of reaching its 20-tonne gold reserve target nearly 18 months ahead of schedule, marking a significant milestone in the country’s reserve diversification strategy.
BoT Governor Emmanuel Tutuba said in a local radio interview that as of February 15, gold holdings had climbed to 19.3 tonnes. The target, originally projected to be achieved within three years, is now expected to be met in just one and a half years.
As the reserve level approaches the 20-tonne mark, the central bank plans to begin selling part of its gold holdings in line with its strategic dollar allocation framework. The move, Mr Tutuba said, will enable the Bank to continue purchasing gold while maintaining balance within the country’s foreign reserves.
“To continue buying, we need to sell according to the strategic dollar allocation. So we will continue to sell appropriately and continue buying appropriately,” he said.
He stressed that gold purchases do not diminish overall foreign reserves, noting that the Bank manages reserves to support monetary policy and exchange rate stability.
The gold acquisition programme, launched on October 1, 2024 under the Bank of Tanzania Act, seeks to formalise the gold market by encouraging small-scale miners to sell directly to the central bank, enhance transparency and strengthen sector regulation. It also aims to diversify reserves and bolster the Tanzanian shilling. Mr Tutuba added that the Bank retains the legal mandate to sell or invest reserves when market conditions are favourable, including trading in gold and foreign currencies to safeguard monetary and exchange rate stability.
The law requires the bank to maintain reserves equivalent to at least four months of import cover, which may include gold, foreign currency, securities, IMF positions, or other internationally recognised assets. It allows the bank to trade in gold and foreign currencies with approved institutions and governments to support monetary and exchange rate stability.
