Lusaka ~ Wed, 6 Jan 2021
By Brightwell Chabusha
The Bank of Zambia has commenced accumulation of gold as part of the official international reserves assets.
The local purchase of gold follows the signing, on 11th December, 2020, of the Gold Purchase Agreement with Zambia Gold Company Limited and Kansanshi Mine.
The Central Bank has so far purchased 47 kgs of Dore gold from Zambia Gold Company limited and the Bank is also expecting Kansanshi Mine to supply gold bullion within the first quarter of 2021.
In a statement issued to *Media today* the Bank notes that 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 adding that reserves are 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 system stability.
The bank says purchasing gold locally using local currency provides a sustainable avenue of international reserves accumulation, provides a long-term store of value, and further enhances investor confidence and it also provides the necessary liquidity for the Bank’s foreign market operations.
This is consistent with the broad objectives of the Government’s Economic Recovery Programme, which was launched on 07th December, 2020.
This statement has been issued by the Bank of Zambia Communications Division Board Services Department.