Uganda joins African countries turning to gold to support currencies

The Bank of Uganda will directly purchase gold from artisanal miners in an effort to support local miners further and reduce the importation of raw gold.

The Bank of Uganda said in a report posted on its website that by purchasing domestic supplies of the precious metal, Uganda will bolster its foreign exchange reserves and reduce risks associated with traditional reserve investments.

“By purchasing gold directly from the artisanal miners, the BOU will also be supporting the livelihoods of artisanal and small-scale miners, and this has positive spill-over effects on other sectors of the economy.”