Bank of Zambia purchases gold to beef up reserve assets

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Lusaka, Jan. 5, 2021 The Bank of Zambia has purchased 47 kgs of Dore gold following the commencement of gold accumulation as part of the official international reserves assets.

A statement released by the Bank on Tuesday said the Dore gold was purchased from Zambia Gold Company and that the Bank is also expecting Kansanshi Mine to supply gold bullion within the first quarter of 2021.

The Bank of Zambia explained that gold purchase is a strategic decision it took 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. 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.

“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,” the statement said.

The Bank said the reserves also provide the necessary liquidity for its foreign market operations, noting that this is consistent with the broad objectives of the Government’s Economic Recovery Programme launched in December 2020.

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