Dismiss Notice
You are browsing this site as a guest. It takes 2 minutes to CREATE AN ACCOUNT and less than 1 minute to LOGIN

Reintroduce local gold reserve, team tells BoT

Discussion in 'Habari na Hoja mchanganyiko' started by nngu007, Jun 1, 2011.

  1. nngu007

    nngu007 JF-Expert Member

    #1
    Jun 1, 2011
    Joined: Aug 2, 2010
    Messages: 15,874
    Likes Received: 28
    Trophy Points: 145
    * It was the shame we never had a gold reserves deposits

    By In2EastAfrica - Tue May 31, 11:25 pm



    [​IMG]
    Parliament’s Public Organisations Accounts Committee chairman Zitto Kabwe speaks during a meeting with senior Bank of Tanzania officials in Dar es Salaam yesterday. With him is committee vice-chairman Deo Filikunjombe. PHOTO | SAID POWA


    The Parliamentary Public Organisations Accounts Committee (POAC), has advised the Bank of Tanzania to re-introduce a national gold reserve.

    POAC chairman Zitto Kabwe issued the directive in Dar es Salaam yesterday when a BoT official presented the central bank’s 2009/2010 financial report. According to Mr Kabwe, the re-introduction of the gold reserve at the bank will help the country to boost the value of the local currency during depreciation. He also said the reserve would help the government to get foreign exchange in times of need.

    “It is very strange that BoT does not keep gold reserves when the country is one of the leading gold exporters in the continent. We are beaten even by Kenya and Malawi which don’t export gold yet they have gold reserves,” he said.

    Mr Kabwe said one of the factors behind the rapid growth in economies of many countries, notably Brazil, India and China, is due to the availability of local gold reserves.

    However, the BoT governor, Prof Benno Ndulu, was against the directive, saying re-introduction of gold reserves poses great risks to the bank.

    Prof Ndulu said BoT decided to close the gold reserve in 2006 due to volatility of the gold prices in the world market.

    For instance, Prof Ndulu said at the time, bought an ounce of gold at $600, but when they decided to sell the precious metal, the price had plummeted to $200 an ounce.

    However, Prof Ndulu remarks drew stiff opposition from the legislators, who noted that that was not the case anymore.Most of the legislators queried why BoT was reluctant to reintroduce the gold reserve on the grounds that it poses a high risk while the country maintains a foreign gold reserve which poses the same type of risks.

    “Everything comes with its own challenges and risks even foreign currencies fluctuate…other countries have benefited well from having gold reserves and I don’t see why BoT was reluctant to reintroduce the reserve,” said Mr Kangi Lugala (Mwibara – CCM).

    Reported by Frank Kimboy and Florence Mugarula, The Citizen
     
  2. nngu007

    nngu007 JF-Expert Member

    #2
    Jun 1, 2011
    Joined: Aug 2, 2010
    Messages: 15,874
    Likes Received: 28
    Trophy Points: 145
    "Prof Ndulu said BoT decided to close the gold reserve in 2006 due to volatility of the gold prices in the world market."

    Is The Government Run by CCM really serious about the country called Tanzania?

    Today, gold reserves are almost exclusively, albeit rarely, used in the settlement of international transactions.
     
  3. m

    mbagasa Member

    #3
    Jun 1, 2011
    Joined: May 26, 2011
    Messages: 47
    Likes Received: 0
    Trophy Points: 0
    Is MR.NDULU real serious?how can he oppose in that way, does it mean that we are going to import the gold?If its no then,we lack the proper strategies to extract on our own the gold which we have in our country.Ohh God give them sight these people.
     
Loading...