For the first time in Eswatini’s history, the Central Bank of Eswatini (CBE) has acquired gold as part of its foreign reserve portfolio.
This was revealed by the Governor of the Central Bank of Eswatini (CBE), Dr. Phil Mnisi, at the presentation of the CBE’s Annual Integrated Report 2024/25. He said this acquisition is more than a symbolic milestone; it is a strategic decision aimed at safeguarding the Kingdom’s economy, diversifying assets, and strengthening resilience in a volatile global financial landscape.
“Traditionally, Eswatini’s reserves have been held in foreign currency assets, largely pegged to major global currencies,” he said. “While these instruments remain essential, the shifting dynamics of international markets, geopolitical uncertainty, and fluctuating exchange rates demand that we broaden our approach.”
According to the Report, at the end of the 2024/25 financial year, the Bank’s portfolios were predominantly denominated in US dollars and South African rand, together with smaller proportions of other currencies, namely the Euro, British pound, and Chinese yuan.
The Bank maintains an open exposure in terms of the asset position in the IMF’s Special Drawing Rights (SDR), as the internally managed portion of the funds were not held in the Japanese yen, a currency that forms part of the SDR basket.
Dr. Mnisi added that gold, long recognised as a universal store of value, provides an effective hedge against these risks.
“Gold’s intrinsic stability complements our existing assets, ensuring that our reserves can withstand shocks that may destabilise currencies or equity markets,” he said. “This acquisition represents a deliberate step in aligning our reserves management with global best practice. Across the world, central banks have increased their gold holdings in recent years, citing its proven ability to preserve value over centuries.”
The Governor added that gold not only bolsters the Kingdom’s financial security but also signals confidence to investors, markets, and development partners that the Kingdom is actively managing risk with foresight.
“The decision is also part of a broader strategy to modernise and diversify. Alongside gold, we have undertaken asset swaps that give the bank a stronger and more balanced portfolio,” he said. “Together, these measures position us to respond more effectively to financial shocks, maintain liquidity, and support the stability of our currency, the Lilangeni.”
He emphasized that at its core, reserves management is about protecting the livelihoods of emaSwati, and it underpins the Kingdom’s ability to stabilise prices, manage inflation, and ensure that the Kingdom can continue to import essential goods and services without disruption.