BoT gold reserves lift assets, economic stability
The Bank of Tanzania has increased its gold bullion holdings, which has strengthened the central bank's balance sheet and total assets. Experts suggest this move enhances macroeconomic stability and provides a buffer against global financial volatility.
Why it matters
Central banks are increasingly using gold reserves to hedge against geopolitical tensions and currency fluctuations, impacting national economic security.
DAR ES SALAAM: THE Bank of Tanzania's (BoT) gold bullion holdings increased last month, strengthening the central bank's balance sheet as higher gold reserves offset declines in cash holdings and government securities.
According to the BoT's Statement of Financial Position released on Monday, the value of bullion holdings rose by 4.0 per cent to 6.07tri/- at the end of June, up from 5.84tri/- in May. Monetary gold also increased by 9.9 per cent to 3.45tri/- from 3.14tri/-.
The increase pushed the central bank's total assets up by 1.2 per cent to 32.11tri/- from 31.73tri/- recorded at the end of May. Economist and investment banker Dr Hildebrand Shayo said the sustained growth in gold reserves strengthens macroeconomic stability, reinforces the external sector and enhances the country's long-term financial security.
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