Uganda plans domestic gold purchases to build foreign exchange reserves and limit risks on reserve investments, becoming the latest African nation to turn to the precious metal to back up its currency.

The Bank of Uganda said it will directly purchase bullion from artisanal miners in a move that will also support government efforts to support local miners and reduce imports of raw gold.

Uganda’s move echoes a proposal by Nigerian lawmakers for the nation’s central bank to buy all locally produced gold to shore up reserves and fight inflation.

https://www.mining.com/web/uganda-is-latest-african-nation-eying-gold-as-a-currency-shield/