Silver Rises Over 120% YTD 
Sub-Saharan African central banks have been boosting gold reserves to hedge against market volatility, with Ghana, Tanzania and Nigeria leading the charge. BMI (a Fitch Group unit) warns this “gold rush” exposes these countries to two major risks:
Price risk – A sudden drop in global gold prices would dent the value of their reserves and, for exporters like Ghana and Tanzania, cut export revenues.
Liquidity risk – Converting large gold hoards into cash could prove difficult during a crisis, as seen in past balance-of-payments squeezes in India and Argentina.
Ghana’s aggressive buying has pushed gold to a third of its reserves, prompting a new hedging program to cushion against price shocks. Other nations—Kenya, Uganda, Rwanda, Namibia, Burkina Faso and Zimbabwe—are at various stages of adding gold to their balance sheets.
