Contact us
CALL US NOW 1-888-GOLD-160

Tanzania Central Bank Announces Plan to Buy More Gold

  by    0   4

The Bank of Tanzania plans to buy 12 tons of gold during the fiscal year in an effort to boost its foreign exchange reserves. The East African nation joins a growing number of central banks turning to gold.

Tanzania Minister for Minerals Anthony Mavunde said the central bank will purchase gold from domestic miners and refiners in Tanzanian shillings. According to Mavunde, the funds have already been allocated.

In a recent video posted in September, Bank of Tanzania Governor Emmanuel Tutuba said the central bank had already bought 418 kg of gold and plans to purchase six tons by the end of 2023.

Tanzania ranks 20th in the world in gold production. Last year, the country’s mines produced just over 50 tons of gold. Mineral exports totaled about $3.3 billion in the last fiscal year. According to Mavunde, the mining industry contributed 56% percent of the country’s foreign currency reserves.

To incentivize sales to the central bank, government officials and representatives of the mining industry are discussing legislation to lower the royalty charged on gold sales to the bank. Currently, miners sell gold to refineries, the government levies a 7.3% royalty. That compares to a 9.3% royalty when they sell to the Bank of Tanzania. The legislation would lower the tax on sales to the bank to 7.3%.

Mavunde also assured miners that the Bank of Tanzania plans to buy gold based on the global spot price on a daily basis. According to the Tanzania Daily News, this would ensure dealers didn’t have to export gold in order to find the best price in foreign markets.

“The main target is to ensure that money obtained from gold remains in the country’s circulation instead of exporting it outside to boost the economies of foreign nations,” Mavunde said.

Reading between the lines, it appears the Bank of Tanzania would prefer to hold more gold instead of more US dollars.

Mavunde went on to say he hoped the plan would “provide what is expected in the Gross Domestic Product (GDP), as well as uplifting individual economies of miners and business persons in the sector.”

Tanzania joins a growing number of central banks adding gold to their reserves. At the end of the third quarter, the World Gold Council said it’s “all but certain that central banks are on course for another colossal year of buying,” after a record-setting 2022.

Through the first nine months of 2023, central banks bought a net of 800 tons of gold. That was 14% more than through the same period in 2022.

Total central bank gold buying in 2022 came in at 1,136 tons. It was the highest level of net purchases on record dating back to 1950, including since the suspension of dollar convertibility into gold in 1971. It was the 13th straight year of net central bank gold purchases.

According to the 2023 Central Bank Gold Reserve Survey released by the World Gold Council last spring, 24% of central banks had plans to add more gold to their reserves in the next 12 months. Seventy-one percent of central banks surveyed believe the overall level of global reserves will increase in the next 12 months. That was a 10-point increase over prior year.

Download SchiffGold's Why Buy Gold Free Report

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Summer Feeling Hotter Than Usual? Gold Could Be Too.

Certain climate scientists, research economists, and precious metal investors agree: This year could be one of the hottest on record.


Metal of the future? Gold‘s uses in technology

While demand for Gold as an investment has risen greatly historically, and particularly over the past year, recent technological discoveries provide powerful potential for Gold to increase in prominence as an industrial resource. While gold does provide an excellent and relatively safe store of value, its industrial use could rapidly increase its price and universal […]


Gold’s Natural Scarcity Propels its Valuation Growth

The U.S. abandoned the gold standard in 1933. But ninety-one years later, in the midst of an inflation crisis, investors are flocking back to the original. The U.S. government is set to print about $200 billion in bills in 2024. That’s $548 million for every day. Despite the rampant inflation reducing consumer purchasing power around […]


SchiffGold Exclusive: Utah State Representative Speaks on New Precious Metals Law

As the U.S. economy progresses toward monetary catastrophe, individual states are taking action to preserve and enable the use of sound money. Utah recently passed HB 348, which took effect in May and authorizes the state to invest a portion of its funds in precious metals. State Representative Ken Ivory sponsored the bill, and in […]


Chinese Central Bank Halts Gold Acquisitions

China has called quits on its 18-month gold buying spree, causing precious metal prices to stumble this week as the world’s largest buyer unexpectedly closes its tab. In 2023, the People’s Bank of China purchased more gold than any of the world’s other central banks, swelling its reserves of the precious metal to more than […]


Comments are closed.

Call Now