The Bank of Zambia-BOZ is on track to hit the $100m end of year 2022 target it has set.
BOZ has however been challenged to be more ambitious and aggressive to target a reserve chest of about $1 billion worth of gold for it to be tangible enough to be able to help stabilize the kwacha.
In response to a question from the Zambian Business Times-ZBT, during the Monetary Policy Committee Announcement and Press Briefing on Wednesday, on the current gold reserves the country has, BOZ Deputy Governor-Operations Dr. Francis Chipimo said the bank currently has US$63 worth of gold bullion reserves.
Dr. Chipimo had earlier stated that the central bank intends to purchase US$48 million worth of gold from Kansanshi Copper Mine in 2022.
He said the bank was purchasing gold from Zambia Gold Company, a subsidiary of ZCCM-IH but that is currently on suspension until the issues surrounding the operations of Zambia Gold Company are resolved.
The Deputy Governor mentioned that the central bank’s reserves were around US$48 million in , which is more or less, what was purchased in 2021.
Dr. Chipimo explained that there are other precious minerals, which exist but in terms of what qualifies as international reserves; gold is what is traditionally used in the market therefore the reason for building gold reserves.
He noted that gold was purchased to help build international reserves so the focus and qualification for what the bank purchases is based on what can count as international reserves.
“Gold is one of those things which is traditionally known and well traded as it has a deep market so for now that is what the bank is focusing on”, he said.
