Dar es Salaam. The Bank of Tanzania (BoT) has decided not to sell its gold reserves even though global prices have hit record levels, statin...
Dar es Salaam. The Bank of Tanzania (BoT) has decided not to sell its gold reserves even though global prices have hit record levels, stating that its acquisitions are aimed at diversifying the nation's foreign currency holdings instead of making trading gains.
Central Bank Governor Mr. Emmanuel Tutuba stated that the institution would only contemplate selling gold if the nation required more foreign exchange, emphasizing that the current financial standing is robust.
Tanzania has approximately $6.4 billion in foreign exchange reserves (excluding gold), which is sufficient to cover five months of imports," he stated. "We are also consistently receiving inflows of foreign currency from agricultural and mineral exports, along with tourism.
His comments were made as gold maintained remarkable strength throughout October and early November. By mid-October, global prices reached a record high of approximately $4,180 per ounce.
Despite a short decline in early November when the US dollar rose and hopes for Federal Reserve rate reductions decreased, prices recovered to over $4,200 per ounce by November 13–14 due to increased confidence that the Fed will lower rates in December.
Between October and mid-November 2025, the price of gold stayed high, fueled by predictions of reduced interest rates, robust demand for safe assets, purchases by central banks, and increasing investment inflows—although there were periods of fluctuation due to changing economic factors.
In the mining sector, small-scale miners are already experiencing the effects of the price increase. Ms. Nurath Athumani, Secretary of the Imalabuhabi Miners’ Group in Butundwe Division, Geita Region, mentioned that the rise has provided significant relief.
Currently, gold prices have risen from approximately Sh80,000 to between Sh200,000 and Sh300,000 per gram," she stated. "For us miners, this is a major advantage. It enables us to achieve better profits for the long and challenging hours we invest in the mines.
She mentioned that the majority of their gold is sold at the Geita Gold Market, which provides controlled and clear pricing, along with more secure trading environments compared to unregulated sellers.
"These rates offer us optimism for increased financial security and improved quality of life for our households," she further stated.
An independent financial analyst, Mr. Christopher Makombe, stated that the increasing value of gold indicates persistent geopolitical conflicts that keep driving investors towards secure investment options. He highlighted that central banks around the globe continue to be active purchasers.
Higher prices allow Tanzania to generate more dollars from its exports, which boosts foreign reserves and aids in stabilizing the shilling," he stated. "This could help reduce inflationary pressures caused by imported items, particularly fuel and machinery.
Mr. Makombe mentioned that elevated prices enhance profits for mining firms, leading to higher tax income for the government. Increasing prices often encourage additional investments in exploration, extraction, and processing.
He stated that Tanzania might experience the expansion of current mines, the granting of new mining permits, and increasing involvement from international investors.
He observed that the growth of mining activities increases the need for labor and local vendors—like transportation, food service, engineering, and other assistance services—and mentioned that miners operating on a smaller scale could gain from increased earnings, which might enhance income for rural families and help lower poverty levels.
Supporting industries, such as gold refining, banking, insurance, and logistics, also gain advantages from a thriving mining sector.
Nevertheless, Mr Makombe cautioned that excessive dependence on gold income might leave the economy vulnerable to changes in global prices. "Diversification is still crucial for long-term economic growth," he mentioned.
"Generally, rising gold prices are beneficial for Tanzania. They boost government income, draw in investments, generate employment, and reinforce the shilling by increasing foreign currency earnings," he emphasized.
Provided by SyndiGate Media Inc. (Syndigate.info).
