The Statement of Financial Position of the Bank of Tanzania for August 2025 shows that the Bank has strengthened its gold reserves, reaching gold worth 821.8 billion shillings as of August 31, 2025.
This is the largest increase since October 2023, when BoT began purchasing gold for reserves. By July 31, 2025, the Central Bank held gold reserves worth 171.9 billion shillings. However, within just one month, the Bank managed to grow its reserves to 821.8 billion shillings — a 377.8 percent increase.
These gold reserves are part of the Central Bank’s strategy to cope with global shifts, including trade wars between major powers, as well as policy changes in global trade that affect economic conditions in various countries, including Tanzania. In its July 2025 Monetary Policy Report report, the Central Bank explained that gold purchases were aimed at strengthening the shilling amid global challenges.
“The escalating geopolitical tensions, trade frictions, and changes in U.S. foreign aid policies added to global uncertainty, prompting banks to rebalance their portfolios and manage risk exposure,” stated BoT’s report.
“Domestic gold purchases by the Bank have increased liquidity, which has partly reduced pressure on the shilling,” BoT further explained.
The shilling has continued to strengthen in recent days, partly due to the gold purchases. Other contributing factors include tourism, crop exports, and gold exports.
Due to global challenges, including uncertainty after the war in Ukraine, frequent shifts in U.S. policies, and the rapid pace of global political changes tied to regional tensions — many central banks worldwide have turned to accelerated gold purchases since 2023, reducing their reliance on the U.S. dollar as the traditional reserve asset.
READ MORE: Why Bank of Tanzania’s Boost to Gold Reserves Is Crucial Now More Than Ever
According to the World Gold Council, in June the leading gold purchasers included: Uzbekistan (9 tons), Kazakhstan (7 tons), Singapore (6 tons), and China, Turkey, and the Czech Republic (2 tons each). In Africa, Ghana led with 1 ton. In July, Kazakhstan again led with 3 tons, while Turkey, China, and the Czech Republic each bought 2 tons. Uganda also announced it had begun holding gold reserves.
In 2025, the leading gold buyer has been Poland, which purchased 67 tons. Poland remains in heightened tension with Russia; on September 10, 2025, about 19 drones from Russia entered Polish airspace, with three being shot down. Russia insisted it had no intention of invading Poland, a claim Poland has strongly rejected, maintaining that Russia has hostile plans against it. Gold has continued to be the go-to asset in times of uncertainty, and its value has risen globally due to increasing demand.
Tanzania continues to benefit as one of Africa’s largest gold producers. The BoT’s gold-purchase strategy brings double advantages to the economy: first, strengthening the shilling, and second, reducing dependence and pressure on the need for foreign currencies to balance economic policies.
