BoT sells 5.1 tonnes of gold to strengthen reserves

Thu Oct 09 2026

The Bank of Tanzania (BoT) sold 5.1 metric tonnes of gold from its reserves last week as part of a strategic approach to manage bullion holdings amid rising gold prices, aiming to bolster international reserves and stabilize the Tanzanian shilling. BoT Governor Emmanuel Tutuba announced in Dar es Salaam that the bank held 35.4 tonnes of gold before the recent sale. He emphasized that the central bank’s strategy involves actively buying and selling gold depending on market conditions to maximize value.

“We continue to buy and sell depending on when the price is favourable,” Tutuba explained. “If the price is favourable, we sell on any given day. If the price falls, we do not sell.” This approach treats gold not just as a static reserve asset but as a dynamic tool for reserve management.

Tanzania began accumulating gold reserves around 2023 to strengthen foreign-exchange buffers and reduce pressure on the shilling. In September 2024, a directive required gold miners and traders exporting the metal to allocate at least 20% of their output for sale to the central bank, enhancing the bank’s ability to manage gold reserves actively.

The policy enables the BoT to convert part of its gold holdings into foreign exchange when market prices are attractive, while continuing to accumulate gold when prices are less favorable. This dual strategy has helped the bank build gold as a key component of its reserves amid elevated bullion prices. Gold’s importance to Tanzania’s external position has grown, with the latest monetary policy statement highlighting that high gold prices support foreign-exchange earnings and reserve accumulation. As of September, Tanzania’s foreign-exchange reserves stood at over US$6 billion, covering about 4.3 months of imports – above the national minimum of four months.

Governor Tutuba noted that this strategy benefits Tanzania beyond the bullion’s direct value. It provides the central bank with a flexible reserve asset capable of generating foreign exchange from sales, while purchases keep a portion of the country’s mineral wealth within the official reserve system. “Our people in the relevant departments are closely monitoring the market and managing the gold reserves actively,” said Tutuba, underscoring the bank’s commitment to a balanced and responsive reserve management approach.

Source: https://africanminingmarket.com