BY MBONGENI NDLELA

MBABANE- The Central Bank of Eswatini (CBE) has intensified efforts to strengthen the country’s financial resilience after acquiring 2 500 ounces of gold valued at approximately E195 million as part of its reserve assets.

The strategic purchase, made in July 2025, forms part of the Bank’s broader reserves management framework aimed at diversifying its portfolio and protecting the economy against rising global financial uncertainties.

According to the Bank, the move aligns with international central banking practices where gold is increasingly being used as a safe-haven asset and a hedge against inflation, geopolitical tensions, and currency volatility.

The development was highlighted during the Governor’s Annual Monetary Policy Statement (GAMPS) 2026, where the Bank revealed that it intends to gradually expand its gold holdings, including sourcing gold from local production in future.

The initiative is expected to contribute positively towards enhancing the country’s reserve stability while also supporting the growth of the domestic mining sector.

Meanwhile, Eswatini’s gross official reserves recorded notable improvement during 2025, averaging E11.5 billion between January and December. The reserves peaked at E15.5 billion in November 2025, marking a significant increase from the E9.9 billion average recorded in 2024.

The strong reserve position continues to provide critical support for the country’s exchange rate stability, import cover requirements, and investor confidence.

Financial analysts view the accumulation of gold reserves as a progressive step that positions Eswatini alongside modern central banking trends focused on safeguarding economies against unpredictable global market shocks.

The Bank’s latest strategy further signals confidence in the country’s long-term economic outlook and commitment to maintaining macroeconomic stability.

(Courtesy Pic)

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