The Governor of the National Bank of Rwanda has expressed optimism about investments in gold reserves, saying the country would reap returns in the long run. Soraya Hakuziyaremye said this on Thursday, August 21, as she presented the decisions of the quarterly Financial Stability Committee meeting. ALSO READ: Experts weigh in on Rwanda’s plan to add gold to foreign reserves The central bank added gold to its foreign reserves starting in July. “Those investments have started. The good news is that we see that the price of gold, as we had anticipated in our research, continues to increase—around $106,000 to $108,000 per kilo,” Hakuziyaremye said. ALSO READ: Central bank raises lending rate to 6.75% to avert higher inflation She noted that gold has historically offered steady returns. “The annual return on gold prices in the last 20 years has been around 11 per cent,” she said. “As a central bank, of course, when we invest our foreign exchange reserves, I would say the objective is, first, to maintain capital, and that is achieved through gold... and there's even diversification from the government security instruments and adding gold to our portfolio. Second is to have liquid assets and gold is sought-after by central banks.” ALSO READ: Rwanda to add gold to foreign reserves portfolio in next fiscal year Hakuziyaremye stressed that demand for gold remains strong among central banks globally, making it a reliable investment. “So, those three objectives are met. And we will continue to invest in gold as opportunities arise,” she said, adding that the outcomes of the investment would be detailed in BNR’s annual financial reports. The central bank had earlier explained that the decision was part of a broader regional trend in East Africa, where several central banks are diversifying their reserve assets to reduce dependency on traditional instruments.
