DAR ES SALAAM, Tanzania: THE Bank of Tanzania (BoT) has confirmed plans to sell part of the country’s national gold reserves, dismissing claims that the move is intended to finance government development projects.
The central bank clarified that the decision is purely aimed at balance sheet management and enhancing liquidity.
The clarification comes amid widespread reports circulating on social media and in sections of the local media alleging that the government, through BoT, plans to sell gold worth about 1.3 billion US dollars to fund development initiatives, including road construction.
Speaking to journalists in Dar es Salaam yesterday, the Bank of Tanzania (BoT) Director of Financial Markets, Mr Emmanuel Akaro, described the reports as misleading.
He confirmed that while the central bank intends to sell a portion of its gold holdings, the move is strictly aimed at rebalancing its balance sheet in line with internal risk management frameworks and board-approved requirements.
“The main reason behind the decision to sell part of the gold reserves is to ensure that the central bank does not expose itself to risks it may not be able to mitigate. This is about liquidity management, not financing government projects,” Mr Akaro said.
He explained that the timing and structure of the sale will largely depend on prevailing market conditions, particularly movements in global gold prices.
“The manner and timing of the sale will be guided by market prices at the time,” he said.
Mr Akaro noted that the planned sale follows a sharp accumulation of gold that has seen BoT exceed its annual targets.
He said the central bank recently collected gold valued at 3.24 billion US dollars, surpassing its board-approved annual target of 2.0 billion US dollars.
As a result, excess gold estimated at 1.2 billion US dollars will be sold to bring reserve levels back in line with policy guidelines and board expectations.
“We indeed plan to sell gold because we have exceeded the level we initially targeted. When we sell will depend on how the market looks. This is a continuous and structured programme,” Mr Akaro said.
Despite the planned sale, BoT reaffirmed its commitment to continue purchasing gold from local sources.
“We will continue buying gold domestically to strengthen foreign exchange reserves and support the local gold market,” he said.
Mr Akaro further clarified that proceeds from the gold sales will be invested in international financial markets to enhance investment returns, rather than to finance government development projects.
He stressed that BoT is an independent institution and that any decision to use its investments to fund government projects would require explicit approval from Parliament.
“The central bank is independent. Any use of its investments to finance government projects must follow legal procedures and receive parliamentary approval,” he said.
As of January 29, 2026, BoT held foreign exchange reserves valued at approximately 6.52 billion US dollars. Of this amount, gold accounted for about 1.2billion US dollars, while holdings in United States dollars stood at roughly 3.8 billion US dollars. Reserves denominated in China’s yuan were valued at approximately 735 million US dollars.
Mr Akaro noted that the current reserve composition provides flexibility and resilience against external shocks while enabling the bank to optimise returns through strategic investments in global markets.
Tanzania has been purchasing gold from local miners since 2023 as part of efforts to diversify and strengthen its foreign exchange reserves, while supporting domestic mining activities.
The planned sale comes at a time when global gold prices are near record highs, potentially improving the country’s external position.
BoT stressed that the gold transactions are part of routine reserve management and should not be interpreted as a shift in government development financing policy.
