The Bank of Tanzania is using gold purchases to strengthen the country's foreign exchange reserves and support the broader economy, the central bank disclosed. The BoT's Mwanza Branch Director, Upendo Mwakatumbula, outlined the strategy during a forum for journalists and media professionals organised by the Media Institute of Southern Africa Tanzania Chapter in Mwanza. The central bank has acquired 35 tonnes of gold since October 2024, she said, as part of measures to reinforce Tanzania's economic position.
The central bank has multiple responsibilities in managing the national economy, according to Stanley Nderingo, an Assistant Manager in the BoT's Operations Department. These include producing currency according to national needs and ensuring banknotes and coins are available and distributed through banks to support economic activity. The availability of currency is essential for transactions by individuals and institutions, he said.
The BoT warned the public against deliberately destroying banknotes. Anyone found guilty of this offence could face a one-year prison sentence and a fine of 500,000 Tanzanian shillings, according to Mr Nderingo. He urged people to handle banknotes carefully to keep them fit for circulation and reduce costs associated with replacing damaged currency.