BoZ commences gold purchasing programme

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BoZ commences gold purchasing programme
BoZ commences gold purchasing programme

Africa-PressZambia. The Bank of Zambia (BoZ) has commenced the accumulation of gold as part of its reserves assets.

BoZ Assistant Director for Communications Lwanga Mwilu disclosed that this was after the purchase of 47 kilogrammes of Dore Gold from the Zambia Gold Company Limited operating under ZCCM-IH.

Ms. Mwilu added that the Bank is also expecting supply of gold bullion within the first quarter of 2021 from Kansanshi Mines.

“The local purchase of gold follows the signing, on December 11, 2020, of the Gold Purchase Agreement with Zambia Gold Company Limited and Kansanshi Mine,” Ms. Mwilu stated.

She indicated that gold purchases is a strategic decision made by the Central Bank to broaden the composition and diversification of international reserves portfolio.

Ms. Mwilu pointed out that the addition of gold as a reserve asset will supplement the country’s international reserves essential for the bank to provide protection against adverse economic shocks and in achieving the monetary policy objectives of price and financial system stability.

She explained that purchasing gold locally provides the necessary liquidity for the bank’s foreign market operations.

“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,” Ms. Mwilu explained.

She added that the action is in line with the broad objectives of the government’s economic recovery programme, launched by President Edgar Lungu late last year.

This is contained in a statement issued to the media in Lusaka yesterday.

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