Africa Banking Commodities Currency Economy Finance Government Zambia

Zambia’s central bank starts gold purchase for international reserves

Zambia’s central bank on Tuesday said it has commenced the accumulation of gold as part of the official international reserve assets.

This follows the purchase of 47 kilograms of gold from Zambia Gold Company Limited, a state-firm engaged in the mining of gold in the country.

The two entities signed an agreement for the purchase of gold on December 7, 2020.

The Bank of Zambia said in a release that it was expecting another mining firm, Kansanshi Mine, to supply gold bullion within the first quarter of 2021.

Also read: Zambia requests financing arrangement with the IMF

“Gold purchases is a strategic decision made by the bank to broaden the composition and diversification of international reserves portfolio. The addition of gold as a reserve asset will augment the country’s international reserves,” the release said.

It adds that the reserves were an essential part of the bank’s toolkit in providing protection against adverse economic shocks and in achieving the monetary policy objectives of price and financial systems’ stability.

Source: Xinhuanet

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