Tanzania Shelves Gold Sale Plan Due to Declining International Prices
DODOMA: PRIME Minister Dr Mwigulu Nchemba has said the government has not sold any of the gold acquired by the Bank of Tanzania (BoT) as part of the country’s foreign exchange reserves, explaining that plans to do so were shelved after international prices declined, making such a move economically unviable. Dr Nchemba made the clarification in the National Assembly yesterday, while responding to a question from Tarime Urban Member of Parliament Esther Matiko during the questi
Prime Minister Dr. Mwigulu Nchemba announced that the Tanzanian government has abandoned its plan to sell gold reserves held by the Bank of Tanzania (BoT). The decision was made because international gold prices declined significantly, making the sale economically unviable. Initially, the government considered selling gold when prices were around US$5,500 per ounce, but the market later dropped to approximately US$4,000 per ounce. Dr. Nchemba clarified that no gold has been sold, dismissing rumors as unfounded. He emphasized that Tanzania currently holds about 27 tonnes of gold, valued at approximately US$3.9 billion, which constitutes nearly 45% of the country's foreign exchange reserves. The Prime Minister praised President Samia Suluhu Hassan's policy of accumulating gold reserves for strengthening economic resilience.
The government's decision to abandon the gold sale plan due to price fluctuations underscores the volatility of commodity markets and the strategic importance of reserve management.
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