Main gold producers within the nation embody AngloGold Ashanti Plc and Barrick Gold Corp.
The central financial institution began shopping for gold from miners in 2023 as a diversification technique to assist assist Tanzania’s shilling, which has depreciated nearly 8% in opposition to the greenback this 12 months.
Uganda, Madagascar and Ghana even have applications to purchase gold from miners to hedge in opposition to geopolitical tensions which have battered their currencies.
African nations have been among the many worst affected by the supply-chain disruptions attributable to the coronavirus pandemic, battle in Ukraine and a steep improve in international rates of interest that undermined their currencies and stoked inflation. The area stays weak to risk-off sentiment amongst traders after battle flared within the Center East.
(By Fumbuka Ng’wanakilala)