Kenyan Central Bank plans buying Gold
CBK Governor Kamau Thugge stated that Kenya's Central Bank is considering adding gold to its foreign exchange reserves to diversify and lessen reliance on the US dollar.
Quick overview
- Kenya's Central Bank is considering adding gold to its foreign exchange reserves to reduce reliance on the US dollar.
- Governor Kamau Thugge mentioned that a specialized team is studying this issue during the IMF and World Bank meetings.
- Thugge emphasized the need to diversify foreign reserves and capture gold, although no deadline has been set for this initiative.
- Currently, Kenya's foreign reserves are predominantly in US dollars, with only 0.02 tons of gold held.
CBK Governor Kamau Thugge stated that Kenya’s Central Bank is considering adding gold to its foreign exchange reserves to diversify and lessen reliance on the US dollar.
Thugge gave an interview to Bloomberg TV, discussing how a specialized team studying the issue during the IMF and World Bank meetings in Washington. However, no deadline has been provided.
Thugge’s comments came in light of many other central banks around the globe transitioning to gold and the prospects that the Kenya Central Bank has with its gold reserves.
“It’s something we have considered for a while, and we are looking into it,” said the governor.
“We essentially have a task force that is looking into this matter. Of course, this is one of the considerations we are working on. But I wouldn’t want to give a deadline on that.”
He highlighted, “One of the primary factors why we are looking into this avenue is the need to diversify our foreign reserves away from other currencies and capture gold.”
Kenya’s foreign reserves are mostly controlled in US dollars, and the country possesses only 0.02 tons of gold.
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