African countries actively buying gold, losing confidence in US currency
Increasing numbers of African countries are buying gold into their state reserves in order to protect themselves from currency losses, fearing that the United States will use the US Dollar as an instrument of pressure, TASS reports
It is noted that, in 2024, Zimbabwe, Madagascar, Nigeria, Tanzania, Uganda and South Sudan have taken steps to increase their gold reserves.
A month ago, the Central Bank of Uganda unveiled a programme to purchase gold from local artisanal miners in order to ‘eliminate the risks that have arisen in global financial markets’. At the same time, the Tanzanian government announced plans to spend $400m to purchase six tonnes of gold. In parallel, the Tanzanian Finance Ministry issued a directive on limiting the use of the US Dollar within the country. Nigeria has launched plans to purchase gold domestically in order to increase state reserves, fearing the risks of weakening the US economy.
It is noted that African countries are concerned about Washington turning the US Dollar into a weapon against other countries, as well as the risks associated with the growing US government debt.
