Kenya might store its gold reserves at the Bank of England, the English equivalent of the Central Bank of Kenya (CBK), it has now been revealed.
In an interview with Bloomberg, CBK Governor Kamau Thugge revealed that Kenya has already held talks with the BoE as a potential avenue for bullion storage.
The talks come as Kenya plans to buy gold, which has more than doubled in price over the past two years, to diversify its reserves, which also include US dollars.
“We’ve talked to the Bank of England and other banks to see how we go about it, where it will be stored, those kinds of things,” Thugge noted.
“I’m hoping that we can do it as soon as is practical because we’re ready to move,” he added.
The CBK boss maintained that Kenya’s plans to add gold were not an intention to diversify away from dollars but to diversify the nation’s foreign holdings.
As per Thugge, the country would acquire the gold from its foreign reserves, which amount to $11 billion (Ksh1.4 trillion), although he declined to reveal how much would be converted to gold.
Gold’s record run has benefited from investors expecting further Federal Reserve interest-rate cuts, while rising debt levels in the developed world have also triggered concerns. The surging prices that have topped $4,200 (Ksh542,640) an ounce prompted some caution from Thugge.
“Those who got in early have made a killing,” he said. “Those who get in late can also be killed. So we must hold a level where, should there be a reversal in the price of gold, it doesn’t really have a huge impact on our holdings.”
The Bank of England is the United Kingdom’s central bank, responsible for managing the country’s monetary policy and ensuring financial stability.
It was founded in 1694, making it one of the oldest central banks in the world. Its main roles include issuing banknotes, overseeing monetary policy, monitoring financial stability, and managing foreign exchange and reserves management.
Headquartered in London, the Bank is independent of the government in its day-to-day operations, though it works closely with the UK Treasury and Parliament.
