BoT urged to purchase more gold  amid Covid-19 pandemic

25Apr 2020
The Guardian
BoT urged to purchase more gold  amid Covid-19 pandemic

​​​​​​​THE Bank of Tanzania (BoT) has been advised to purchase more gold  amid Covid-19 pandemic as part of strides meant to rescue the country’s economy from falling down.

Ezekiel Maige.

Msalala MP, Ezekiel Maige (CCM) made the call yesterday here warning that if early intervention  measures were not be taken, the country’s economy could be shaken greatly.

He noted the   disease which has killed thousands of people globally while also affecting millions of people, may bring more negative impacts in the country.

“Gold price in the global market is still higher but declined in the local market, we have also witnessed big nations reporting how the disease had affected their economy, with all signs, it high time our central bank acted accordingly by purchasing more gold and put it in stock for future use,” he said.

The lawmaker also called on the Ministry of Finance and Planning to think on the issue and come up with more interventions that will enable the country’s economy remain stable.

“I remember when the deputy minister of Finance and Planning Dotto Biteko told the House recently that the government had purchasedg gold through STAMICO. But this should no not limit BoT from keeping more stocks of the minerals,” Maige said.

According to him, by purchasing more gold, small-scale miners will also benefit by earning more incomes for their daily needs.

On February, this year, President John Magufuli ordered the central bank to create a gold reserve as the minerals are payable.

“We should start buying gold, the central bank must invest in this. We must have our reserves in dollars but also our reserves in gold, because gold is money,” Magufuli said at a ceremony in Dar es Salaam.

President Magufuli is intent on regulating the country’s mining sector, which had been facing challenges of fraud and under-reporting of production and profits, and has locked horns with foreign mining companies.

“For example, according to recent reports, Tanzania is not the biggest gold exporter in East Africa, even though we know we are the biggest gold producers in the region,” he said.

“We are not profiting from our gold as we should,” he added.