DAR ES SALAAM; August 5, 2026 – Tanzania's foreign exchange reserves surged by approximately 24 per cent at the end of June, reaching US$6.8 billion, driven by the monetisation of gold deposited at the Bank of England as the Bank of Tanzania (BoT) accelerates efforts to diversify its reserve assets and strengthen the country's external financial resilience.
The reserves increased from US$5.5 billion recorded in May, providing import cover equivalent to approximately five months of projected goods and services imports. The improvement reflects the growing role of gold within the central bank's reserve management strategy.
Gold Becomes a Strategic Reserve Asset
The Bank of Tanzania has incorporated monetised gold into its official reserve management framework, reinforcing the country's ability to withstand foreign exchange pressures and global financial market volatility.
The initiative forms part of the central bank's long-term strategy to diversify international reserves beyond traditional financial assets, positioning gold as a key component of Tanzania's external reserve portfolio.
Gold Holdings Reach 29 Tonnes
Speaking during an exclusive television interview in Dodoma, Bank of Tanzania Governor Emmanuel Tutuba revealed that the country's gold reserves have increased by approximately 271 per cent, reaching 29 tonnes as of July 2026.
According to the Governor:
- 10.6 tonnes have been deposited at the Bank of England and monetised.
- 18.5 tonnes are currently stored in the Bank of Tanzania's vaults.
"As of now, we have accumulated 29 tonnes of refined gold, with 10.6 tonnes deposited at the Bank of England and the rest stored in Tanzania," Mr Tutuba said.
He explained that while the gold held in London has already been monetised and integrated into reserve management operations, the remaining gold stored domestically has yet to be monetised because local refineries are still awaiting accreditation from the London Bullion Market Association (LBMA).
BoT to Continue Buying Local Gold
Governor Tutuba reaffirmed that the central bank will continue purchasing locally produced gold at prevailing market prices under its reserve accumulation programme.
He noted that the gold would only be sold when necessary to meet foreign exchange requirements or when market conditions make such transactions economically beneficial.
Balance Sheet Strengthens
The Bank of Tanzania's latest Statement of Financial Position shows continued growth in its gold-related assets.
At the end of June:
- Bullion holdings increased by 4.0 per cent to TSh 6.07 trillion, up from TSh 5.84 trillion in May.
- Monetary gold rose by 9.9 per cent to TSh 3.45 trillion, compared to TSh 3.14 trillion the previous month.
The stronger gold position contributed to a 1.2 per cent increase in the central bank's total assets, which reached TSh 32.11 trillion.
Experts See Greater Economic Resilience
Economist and investment banker Dr Hildebrand Shayo said the expansion of Tanzania's gold reserves strengthens the central bank's balance sheet while improving the diversification of the country's international reserve assets.
According to Dr Shayo, larger gold holdings provide an important safeguard against geopolitical risks, global financial market volatility and exchange-rate pressures, helping maintain confidence in the economy while enhancing resilience against external shocks.
A Strategic Shift in Reserve Management
The rapid growth in Tanzania's gold reserves signals a strategic shift in how the country manages its external assets. By increasing exposure to gold, the Bank of Tanzania is reducing reliance on conventional reserve instruments while building stronger buffers to support macroeconomic stability amid an increasingly uncertain global economic environment.
As the country continues expanding its reserve portfolio, gold is expected to play an even more significant role in safeguarding Tanzania's financial stability and supporting long-term economic resilience.
Source: Daily News Tanzania.
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