https://en.sputniknews.africa/20240724/gold-rush-african-nations-seek-safe-haven-amid-currency-woes-1067616575.html
Gold Rush: African Nations Seek Safe Haven Amid Currency Woes
Gold Rush: African Nations Seek Safe Haven Amid Currency Woes
Sputnik Africa
African nations have been hit hard by the ripple effects of the pandemic, the conflict in Ukraine, and rising global interest rates, leading to currency... 24.07.2024, Sputnik Africa
2024-07-24T11:51+0200
2024-07-24T11:51+0200
2024-08-04T14:39+0200
sub-saharan africa
zimbabwe
ukraine
south sudan
us treasury
tanzania
madagascar
nigeria
uganda
gold
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African nations are turning to gold in a bid to protect their economies from the turbulent global landscape. Geopolitical tensions, currency fluctuations, and rising inflation have prompted a rush to bolster gold reserves as a hedge against economic instability.This trend is expected to continue, with the World Gold Council anticipating that around 20 central banks will boost their gold reserves in the coming year.While gold doesn't generate interest like US Treasury bonds, its surge in price this year (up 16% to $2,396.59 per ounce) makes it a profitable investment.South Sudan aims to add gold to its reserve, with the central bank actively exploring policies and best practices from other nations.Uganda is planning to purchase gold directly from artisanal miners to bolster foreign currency reserves, which have been impacted by capital flight following anti-LGBTQ legislation.Nigeria's central bank is also considering using gold to stabilize the naira and combat inflation.Meanwhile, Madagascar has already begun domestic gold purchases to compensate for declining vanilla exports.Tanzania recently allocated $400 million for the acquisition of six tons of gold.Zimbabwe, which introduced gold coins in 2022, has launched a bullion-backed currency, Zimbabwe Gold (ZiG), to combat inflation and exchange rate volatility. The move marks Zimbabwe's sixth attempt to establish a functional local currency in 15 years.The increased focus on gold reflects a growing desire among African nations to safeguard their economies against global uncertainties and maintain stability during a period of economic volatility.
https://en.sputniknews.africa/20240705/zimbabwe-will-be-completely-free-of-us-dollar-by-mid-2026-president-says-1067391470.html
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zimbabwe, ukraine, south sudan, us treasury, tanzania, madagascar, nigeria, uganda, gold, zimbabwe gold (zig), gold miners, economy, central bank, us dollar, politics
Gold Rush: African Nations Seek Safe Haven Amid Currency Woes
11:51 24.07.2024 (Updated: 14:39 04.08.2024) Muhammad Nooh Osman
Writer/Editor
African nations have been hit hard by the ripple effects of the pandemic, the conflict in Ukraine, and rising global interest rates, leading to currency devaluation and soaring inflation.
African nations are turning to gold in a bid to protect their economies from the turbulent global landscape. Geopolitical tensions, currency fluctuations, and rising inflation have prompted a rush to bolster gold reserves as a hedge against economic instability.
This trend is expected to continue, with the World Gold Council anticipating that around 20 central banks will boost their gold reserves in the coming year.
While gold doesn't generate interest like US Treasury bonds, its
surge in price this year (up 16% to $2,396.59 per ounce) makes it a profitable investment.
South Sudan
aims to add gold to its reserve, with the central bank actively exploring policies and best practices from other nations.
Uganda is planning to purchase gold directly from artisanal miners to bolster foreign currency reserves, which have been impacted by capital flight following anti-LGBTQ legislation.
Nigeria's central bank is also considering using gold to stabilize the naira and combat inflation.
Meanwhile, Madagascar has already begun domestic gold purchases to compensate for declining vanilla exports.
Tanzania recently allocated $400 million for the acquisition of six tons of gold.
Zimbabwe, which introduced gold coins in 2022, has launched a bullion-backed currency,
Zimbabwe Gold (ZiG), to combat inflation and exchange rate volatility. The move marks Zimbabwe's sixth attempt to establish a functional local currency in 15 years.
The increased focus on gold reflects a growing desire among African nations to safeguard their economies against global uncertainties and maintain stability during a period of economic volatility.
