List of African Central Banks with Largest Gold Compared to US Dollar Reserves, Including Kenya
- Central banks globally have recently increased gold reserves to 36,000 tonnes following volatilities in the foreign currency market
- According to the World Gold Council (WGC), most countries in Africa continue to raise their gold reserves and reduce overreliance on foreign currency
- Kenya is one of the countries with significant gold reserves at the central bank, compared to its foreign currency reserves of up to KSh 1.4 trillion worth of US dollars
Wycliffe Musalia has over six years of experience in financial, business, technology, climate, and health reporting, providing deep insights into Kenyan and global economic trends. He currently works as a business editor at TUKO.co.ke.
The global exchange market has recently experienced currency volatility, forcing central banks to resort to gold reserves for stability, liquidity, and consistent returns.
Source: UGC
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According to the World Gold Council (WGC), the three gold investment strategies are vital in cementing central bank reserves.
The WGC report indicates that countries with the largest central bank gold reserves hold one-fifth of the total gold mined globally.
Why central banks buy more gold
Business Insider reported that central banks continue to stockpile gold, with holdings hitting 36,000 tonnes in 2024.
The increase resulted from global central banks' purchase of more than 1,000 tonnes of gold.
WGC's report also cited diversified portfolios and protection from geopolitical and economic risks as the main reasons central banks increase their gold reserves.
Gold reserves in Africa
The report added that central banks in Africa use gold reserves to evade volatilities in the exchange rate that affect local currencies and to cut reliance on foreign currencies.
Countries producing gold are the leading gold reserve holders on the continent.
Forbes reported that the top producers of gold, which currently trades at $3,390 (KSh 438,158) per ounce, are Ghana, South Africa, and Mali.
However, according to the WGC, some of these countries have yet to declare their central bank gold reserves.
Which African countries have highest gold reserves?
Below is the list of the top seven African countries with the highest central gold reserves compared to the US dollar.
| Country | Central Bank Gold Reserves (tonnes) | Central Bank Dollar Reserves (USD) |
| 1. Algeria | 173.56 | $64.36 billion |
| 2. Libya | 146.65 | $80.81 billion |
| 3. Egypt | 128.27 | $32.91 billion |
| 4. Ghana | 31.01 | $9.4 billion |
| 5. Mauritius | 12.42 | $7.54 billion |
| 6. Tunisia | 6.84 | $7.64 billion |
| 7. Kenya | 0.02 | $10.66 billion |
Source: UGC
What to know about dollar reserves in Africa
- Kenya has been implicated in the gold smuggling business among East African countries, including Rwanda and South Sudan.
- Most African countries, including Uganda, Tanzania, and Nigeria, have been buying gold to increase their reserves.
Kenya's foreign currency reserves
In other news, the Central Bank of Kenya (CBK) maintained high foreign currency reserves to stabilise the shilling.
CBK's current reserves stand at KSh 1.4 trillion worth of US dollars as the shilling maintains stability in value against international and regional currencies.
President William Ruto applauded the banking regulator for raising US dollar reserves to over $10 billion.
Proofreading by Mercy Nyambura, copy editor at TUKO.co.ke.
Source: TUKO.co.ke
