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DRC Central Bank to Buy Gold from State Trader
21 Feb
Summary
- Central bank will acquire gold for reserves from DRC Gold Trading.
- Gold will be sourced from artisanal mining sites across Congo.
- This initiative aims to capitalize on the country's gold wealth.
The Democratic Republic of Congo's central bank is set to initiate purchases of gold for its monetary reserves through DRC Gold Trading SA, a state-owned company. This strategic partnership will procure gold from the country's artisanal mining operations.
Central bank Governor Andre Wameso highlighted that this arrangement positions the bank as the primary buyer of gold from Congolese artisanal diggers. DRC Gold Trading, previously known as Primera, was established three years ago to enhance revenue capture from the informal gold sector.
This sector, which supports hundreds of thousands of diggers, often operates outside official commercial networks, leading to billions of dollars worth of gold being trafficked to neighboring countries and onward to Dubai. DRC Gold Trading aims to intercept up to 18 tons of output this year, potentially valued at nearly $3 billion at current prices.
Remarkably, the central bank currently holds no gold in its reserves. Governor Wameso has also explored possibilities for building a local refinery to further bolster reserves and strengthen the Congolese franc.
