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Dar es Salaam; October 9, 2026 - The Bank of Tanzania (BoT) sold 5.1 metric tonnes of gold from its reserves last week as prices rose, reflecting its strategy of actively managing bullion holdings to strengthen foreign exchange reserves and support the Tanzanian shilling.
BoT Governor Emmanuel Tutuba disclosed the sale to reporters in Dar es Salaam, saying the central bank held 35.4 tonnes of gold before the transaction.
“We continue to buy and sell depending on when the price is favourable,” Tutuba said, explaining that the bank sells gold when market conditions present an opportunity to realise value and refrains from selling when prices are less favourable.
“If the price is favourable, we sell on any given day. If the price falls, we do not sell,” he added.
BoT Adopts Active Gold Reserve Management Strategy
Tutuba said the central bank treats gold as an actively managed reserve asset rather than simply accumulating bullion over time. The strategy involves purchasing gold to build reserves and selling part of the holdings when favourable market conditions allow the bank to realise gains.
He noted that the bank's relevant departments closely monitor market movements and related calculations to determine appropriate buying and selling decisions.
The approach gives the BoT flexibility to generate foreign exchange from gold sales while continuing to accumulate bullion as part of its broader reserve-management strategy.
Tanzania Strengthens Gold Reserves
The Bank of Tanzania began purchasing gold for its reserves around 2023 as the country sought to strengthen its foreign exchange buffers and ease pressure on the shilling.
In September 2024, the mining regulator directed gold miners and traders exporting the metal to allocate at least 20 per cent of their output for sale to the central bank. The measure supports domestic gold purchases and helps incorporate the country's mineral wealth into official reserve management.
The strategy has become increasingly significant as international gold prices remain elevated, creating opportunities for Tanzania to benefit from both the appreciation of its holdings and sales when market conditions are attractive.
According to the BoT's latest monetary policy statement, elevated gold prices have supported foreign exchange earnings and reserve accumulation.
Foreign Exchange Reserves Exceed $6 Billion
Tanzania's foreign exchange reserves stood at more than $6 billion in September, covering approximately 4.3 months of imports. This was above the country's minimum benchmark of four months of import cover.
The reserve position is important for supporting external payments, meeting the country's foreign currency needs and helping maintain stability in the foreign exchange market.
Gold is becoming an increasingly important component of Tanzania's external reserve position, offering the central bank an additional asset that can be converted into foreign exchange when needed.
Gold Strategy Supports Economic Stability
The BoT's gold management strategy provides two potential benefits: strengthening official reserves through gold accumulation and generating foreign exchange through sales when prices are favourable.
Domestic gold purchases also help retain part of Tanzania's mineral wealth within the official reserve system, while strategic sales enable the central bank to take advantage of market opportunities.
By balancing accumulation with selective sales, the Bank of Tanzania aims to improve reserve management, reinforce the country's external financial position and support the stability of the Tanzanian shilling.
Source: Daily News
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