28.07.2024. / 9:02
KAMPALA – More and more African countries, primarily Nigeria, Uganda, Zimbabwe and Madagascar, are turning to gold to protect their currencies, that is, they have taken measures to increase gold reserves, bring their gold back home, and even peg their own currencies to this valuable metal. .
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South Sudan is the last in the series, bearing in mind that last weekend the governor of the central bank there announced that the country plans to expand its gold reserves, and that in this regard it is studying positive examples of countries that have already taken that path, “Mani Metal” reports.
The central bank of Uganda also spoke on this topic – it announced a program to buy gold from local mines in order to insure against risks on the international financial market.
In June, Tanzania announced a plan to spend $400 million on six tons of gold, and Finance Minister Mvigulu Nchemba issued a directive to crack down on the country’s widespread use of the US dollar.
Nigeria is increasing its gold reserves by buying it from local sources, while the central bank is working to bring its gold back into the country “to mitigate the risks associated with the weakening of the US economy”.
“Economic indicators such as rising inflation, escalating debt levels and geopolitical tensions have raised fears among Nigerian politicians about the stability of the US financial system”.
Even last year, Madagascar implemented a program to buy domestic gold and since the income from the export of vanilla fell.
This year, Zimbabwe “protected” its currency with gold – the Zimbabwean dollar was replaced by Zimbabwean gold. The new currency is primarily supported by gold, but also by other foreign exchange reserves, including US dollars.
Zimbabwe’s example will be followed by Ghana’s vice-president and presidential candidate Mahamudu Bavimija if he wins the elections.
As the portal notes, all of this is the result of numerous risks related to the American currency, including large US spending, but also the growing US debt. B92
Source: www.capital.ba
