Tanzania Sells 5.1 Tonnes of Gold as Central Bank Adjusts Reserve Strategy

Image: Acacia Mining Tanzania

The Bank of Tanzania (BoT) has sold 5.1 metric tonnes of gold from its reserves following a rise in international bullion prices, highlighting the country’s strategy of actively managing its gold holdings to strengthen financial resilience.

BoT Governor Emmanuel Tutuba said the sale took place last week after the central bank determined that market prices offered a favourable opportunity to realise value from its gold reserves. The bank held approximately 35.4 tonnes before the transaction, leaving it with around 30 tonnes following the sale.

The move forms part of a broader reserve management approach under which Tanzania buys gold when conditions are favourable for accumulation and sells when prices provide an opportunity to generate foreign exchange.

Tanzania began building its official gold holdings around 2023 as part of efforts to diversify its international reserves, support the Tanzanian shilling and reduce exposure to fluctuations in foreign currency markets.

The programme has expanded through government measures requiring mining companies and gold traders exporting the metal to allocate at least 20% of their output for sale to the central bank. The policy has also helped channel more gold through formal trading systems.

The bank’s gold strategy comes as the metal continues to play an increasingly important role in Tanzania’s mining and financial sectors. Strong international prices can boost export earnings while increasing the value of gold held as a reserve asset.

Tanzania’s foreign exchange reserves stood at more than US$6 billion in September, providing approximately 4.3 months of import cover, according to figures cited in recent reporting. This was above the country’s minimum benchmark of four months of imports

The sale illustrates how central banks can use gold both as a store of value and as a source of liquidity when market conditions are attractive. By selling a portion of its holdings, the BoT can convert bullion into foreign exchange while retaining a substantial gold position.

For Tanzania, the challenge will be balancing opportunities to benefit from elevated gold prices with the longer-term objective of maintaining adequate reserves and protecting the economy against external shocks.

The approach also reinforces the growing connection between the country’s mining sector and its wider financial strategy, as gold production contributes not only to export earnings but also to the management of national reserves.