Ghana, Tanzania, Uganda FX Reserves Most at Risk if Gold Slumps, BMI Says

African central banks' gold rush faces liquidity, price risks, Fitch unit says

Sub-Saharan African central banks that have added gold to their reserves in recent years could face price and liquidity crises if the value of the precious metal slides, BMI, a unit of Fitch Group, said on Wednesday.

Gold rush by African central banks carries liquidity and price risks, says Fitch’s BMI unit

The price of gold faces potential downward pressure from any reduction in US interest rates

Ghana, Tanzania, Uganda FX Reserves Most at Risk if Gold Slumps, BMI Says

Ghana, Tanzania and Uganda face the highest risk in Africa of a plunge in their foreign-exchange holdings if gold prices fall suddenly, potentially putting renewed pressure on their currencies.