Tanzania central bank piles into gold, cutting dollar exposure

The Bank of Tanzania has acquired roughly 28 tonnes of bullion in 18 months, worth $3.8 billion, as part of a broader strategy to diversify reserves away from the US dollar.

By Handelsavisen Newsroom · Automated 2026-07-25 08:58 UTC · 1 min read

The Bank of Tanzania has significantly increased its gold holdings, purchasing approximately 28 tonnes of the metal over the past 18 months.

The acquisitions, valued at roughly $3.8 billion, have made bullion the dominant asset in the country's foreign exchange reserves, marking a decisive shift in its reserve management strategy.

This aggressive accumulation reflects a deliberate move to reduce reliance on the US dollar.

By pivoting toward gold, the central bank aims to insulate its balance sheet from currency volatility and geopolitical risks associated with holding large positions in Western fiat currencies.

The shift aligns with a broader trend among emerging-market central banks seeking to diversify their reserve portfolios amid growing uncertainty in global financial markets.

The reserve buildup comes as Tanzania continues to engage with international financial institutions.