THE government has ruled out possibilities of re-introducing gold in the foreign currency reserves, at least for the time being because of its price instability.
The Deputy Finance Minister, Mr Mwigulu Nchemba, told the
"There are some disadvantages when you include gold in your foreign currency reserves. In our case for this particular time it would not make good economic sense due to price instability," he said in his winding remarks before his ministry's budget for 2014/15 was passed by the
Gold, which accounts for largest share of the country's non-traditional exports, is among the key drivers of the rapid growing economy.
However, earnings from exports of the precious metal have been falling due to low output and the current drop in price in the global market According to
It helps in monetary policies to contain inflation...but in this particular time the prices are very unstable," he said. Former Director of Financial Markets at the
"The central bank has developed cold feet on buying gold for national reserves. We're a bit nervous as (gold) prices have declined substantially and have not yet recovered," she said in a presentation at a seminar to reporters. According to the
The world's largest economy holds 8,133.5 tonnes, followed by
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