The Governor of the Bank of Tanzania, Emmanuel Tutuba, has said that the central bank's decision to sell part of its gold reserves was part of routine reserve management rather than a policy shift driven by short-term pressures.
- •The governor said Tanzania’s gold holdings had grown to 19.6 tonnes, close to the 20-tonne target initially set under the domestic gold purchase programme.
- •Gold currently accounts for more than 30% of the country’s foreign exchange reserves, which stood at approximately US$ 6.5 billion as of December 2025.
- •While government officials have indicated that funds may support development financing, the central bank maintains that its primary objective was reserve optimization and foreign exchange market stability.
According to the central bank, part of the gold sale was aimed at supporting the domestic foreign exchange market. In recent weeks, the bank injected additional US dollar liquidity into the market after assessments indicated increased demand for foreign currency. Two separate tranches- valued at US$ 25 million and US$ 30 million- were supplied through the interbank market.
While gold serves as a strategic reserve asset, the governor noted that it carries price volatility risks, and maintaining a high concentration could expose the country’s reserves to fluctuations in global markets.
