Uganda Unveils Roadmap for Return to the Gold Standard
Uganda is taking steps to bolster its currency by reintroducing gold backing. Last week, the government unveiled a strategy to accumulate gold reserves, aiming to enhance financial stability and mitigate investment risks.
The Central Bank of Uganda, which currently holds no gold reserves, will purchase the metal from local artisanal miners. This initiative aims to support local economies and reduce reliance on imported bullion. The move is part of Uganda’s broader economic transformation goals, as outlined in its recent “State of the Economy” report. Despite challenges like capital flight and regulatory issues.
Uganda joins other African nations exploring gold-backed currencies, following in the footsteps of Zimbabwe and Ghana’s recent initiatives. Given increasing global demand, gold prices are anticipated to potentially soar to new highs, from $27,000 to $40,000 per ounce.
Clever Robot News Desk 17th July 2024
