African central banks' gold rush faces liquidity, price risks, Fitch unit says
Ghana, Tanzania and Nigeria have been buying gold domestically to beef up their reserves, BMI said, a move accelerated by this year's broader market volatility stoked by US trade tariffs and other geopolitical risks.
Policymakers in Kenya and Uganda are exploring a move into gold, Rwanda and Namibia have taken active steps towards adding the metal into their reserves, while Burkina Faso has indicated it will build up its stockpile and Zimbabwe has said its new ZIG currency is backed by gold reserves, BMI said.
'Gold is increasingly being used by sub-Saharan African markets as a strategic store of value,' said Orson Gard, senior Sub-Saharan Africa analyst at BMI, during an investor presentation.
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TimesLIVE
6 days ago
- TimesLIVE
African central banks' gold rush faces liquidity, price risks, Fitch unit says
sub-Saharan African central banks that have added gold to their reserves in recent years could face price and liquidity crises if the value of the precious metal slides, BMI, a unit of Fitch Group, said on Wednesday. Ghana, Tanzania and Nigeria have been buying gold domestically to beef up their reserves, BMI said, a move accelerated by this year's broader market volatility stoked by US trade tariffs and other geopolitical risks. Policymakers in Kenya and Uganda are exploring a move into gold, Rwanda and Namibia have taken active steps towards adding the metal into their reserves, while Burkina Faso has indicated it will build up its stockpile and Zimbabwe has said its new ZIG currency is backed by gold reserves, BMI said. 'Gold is increasingly being used by sub-Saharan African markets as a strategic store of value,' said Orson Gard, senior Sub-Saharan Africa analyst at BMI, during an investor presentation.
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