BANK OF ZAMBIA TO BUY MORE GOLD

BUUMBA CHIMBULU writes @SunZambian THE Bank of Zambia (BoZ) is expecting to buy more gold from Kansanshi Mine within the first quarter of this year. The central bank has started accumulation of gold as part of the official international reserves assets after buying 47 kilogrammes of ore gold from Zambia Gold Company Limited. “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,” says BoZ in a statement. According to the statement, buying gold locally using local currency provided a sustainable avenue of international reserves accumulation, a long-term store of value, and enhanced investor confidence. The BoZ also said this also provided the necessary liquidity for the Bank’s foreign market operations “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. “Gold purchase is a strategic decision made by the Bank 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,” the BoZ said. The central bank indicated that this was consistent with the broad objectives of the government’s Economic Recovery Programme, which was launched last December 7. Earlier, the central bank had announced that it has bought 47 kilogrammes of Gold from the Zambia Gold Company Limited, under ZCCM Investments Holdings. Central Bank Governor Christopher Mvunga said the recently purchased gold was currently siting in the central bank’s vault. Mr. Mvunga said the move would help to build the country’s gold reserves. Mr. MvungaMr. Mvunga said the investment would also build and enhance the market’s confidence in the central bank’s ability to fulfill its mandate of price and financial system stability. The BoZ recently signed a Gold Purchase Agreement with the Zambia Gold Company Limited, a subsidiary of ZCCM-IH.