Tanzania mulls introducing Tanzanite gemstones to national reserve to hedge against price volatility
Tanzania’s government is mulling including Tanzanite gemstones in the national reserves at Central Bank to replace gold due to its price volatility.
According to the Minister for Finance and Planning, Dr Phillip Mpango, the decision to go with Tanzanite and extraordinary gemstones in the reserves has been informed its price stability in the world market and the fact that it is mined in Tanzania.
Tanzanite is the blue/violet variety of the mineral zoisite (a calcium aluminium hydroxyl Sorosilicate) belonging to the epidote group. It was discovered by a Tanzanian Jumanne Mhero Ngoma in the Mirerani Hills of Manyara Region in Northern Tanzania in 1967, near the city of Arusha and Mount Kilimanjaro.
According to the minister, said global gold price fluctuation was one of the factors that made the government to rescind plans for including the bullion in the national foreign reserve. With gold output at roughly 40 tonnes a year, Tanzania is the fourth largest gold producer in Africa after South Africa, Ghana and Mali. The Kigoma Urban legislator, Kabwe Zitto was not convinced with the argument by the minister.
He said that the US dollar was as well not stable and asked the government to reconsider its position. In his main question, Dr Kafumu said the country has enough gold which he said should be turned to monetary reserve as it is the case with other African countries , Ghana and South Africa being amongst.
The Deputy Minister for Finance and Planning, Dr Ashatu Kijaji had earlier said the reserves kept by the Central Bank were enough for importing goods for a period of four months. She said the foreign reserve could either be kept in either monetary gold or foreign currency but for convertibility they had opted for dollars.
