BoT builds gold reserves to strengthen economy

DAR ES SALAAM: THE Bank of Tanzania (BoT) has highlighted the importance of gold purchases in strengthening the country’s foreign exchange reserves and supporting the national economy.

BoT Mwanza Branch Director, Upendo Mwakatumbula said the acquisition of gold was among measures being undertaken by the central bank to reinforce the country’s economic position.

Speaking during a one-day forum for media stakeholders, editors and journalists organised by the Media Institute of Southern Africa Tanzania Chapter (MISA-TAN) in Mwanza, Ms Mwakatumbula said gold purchases were aimed at strengthening the country’s foreign exchange reserves.

She disclosed that the central bank had purchased 35 tonnes of gold since October 2024, highlighting the metal’s role in building national reserves.

Presenting a paper at the forum, BoT Assistant Manager in the Operations Department, Mr Stanley Nderingo, said the central bank had various responsibilities aimed at managing the national economy and ensuring the smooth functioning of the monetary system.

He said the bank was responsible for producing currency according to the country’s needs and ensuring that banknotes and coins were available and distributed through banks to facilitate economic activities.

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Mr Nderingo stressed that the availability of currency was essential for daily economic transactions by individuals and institutions.

He also warned against the deliberate destruction of banknotes, saying anyone found guilty of the offence could face a one-year prison sentence and a fine of 500,000/-.

“Anyone found guilty of deliberately destroying banknotes could face a oneyear prison sentence and a fine of 500,000/,” he said.

He urged the public to handle banknotes carefully to keep them fit for circulation for as long as possible and reduce the costs associated with replacing damaged currency.

For his part, MISA-TAN Chairperson Edwin Soko said the forum was intended to strengthen relations between institutions and the media and improve journalists’ access to information.