African Nations Turn to Gold to Protect Against Currency Losses.

African nations, including South Sudan, Zimbabwe, and Nigeria, are increasing their gold reserves as a hedge against geopolitical tensions that have negatively impacted their currencies and caused inflation. This follows the example of countries like China and India, which have also been accumulating gold to diversify their reserves and reduce dependence on the US dollar. Around 20 central banks are expected to increase their gold holdings in the coming year. The price of gold has risen by 16% this year to $2,396.59 per ounce. African nations have been particularly affected by supply chain disruptions caused by the pandemic, the war in Ukraine, and global interest rate increases. They are also facing geopolitical tensions such as the conflict in Gaza, trade wars, and concerns about the potential impact of a second term for Donald Trump as US president. South Sudan, Uganda, and Nigeria are among the countries taking steps to expand their gold reserves. The Bank of Uganda plans to purchase gold directly from artisanal miners to address declining foreign currency reserves and associated risks in international financial markets. Nigerian lawmakers are proposing the use of gold to support and stabilize the naira and mitigate inflation risks. Zimbabwe has launched a bullion-backed currency, ZiG, backed by 2.5 tons of gold, as a measure to curb inflation and exchange rate volatility. The governor of Zimbabwe's central bank plans to increase reserves to over three tons this year. The World Gold Council has been working with central banks to structure domestic purchase programs from small-scale miners. However [Extracted from the article]