Gold Purchase Programme: BoG almost doubles gold reserves; now at 15 tonnes says Governor Addison
In a significant development that has caught the attention of the financial world, Ghana’s Central Bank has witnessed a remarkable surge in its gold reserves since the commencement of its gold purchase program. The Governor of the Central Bank, Dr. Ernest Addison, announced during the 112th Monetary Policy Committee (MPC) press briefing that the gold reserves at the bank have nearly doubled, increasing from 8 tonnes to an impressive 15 tonnes. This accomplishment highlights the success of the gold purchase program and its significant impact on Ghana’s foreign exchange position.
The Central Bank’s decision to revise its annual target for gold purchases further underscores its commitment to bolstering reserves and stabilizing the domestic currency, the cedi. Initially, the bank had set a target of acquiring 10,000 ounces of gold to be held as reserves. However, recognizing the potential benefits of accelerated gold accumulation, the Bank of Ghana revised the target to a substantial 217,000 ounces. This revision reflects the bank’s strategic intent to fortify foreign exchange reserves and promote medium-term currency stability.
The gold purchase program not only contributes to Ghana’s foreign exchange reserves but also enhances the country’s balance of payments. By steadily increasing its gold holdings, Ghana is positioning itself as a significant player in the global gold market, capitalizing on the nation’s rich gold resources. As a result, the program offers a sustainable and valuable addition to Ghana’s foreign exchange reserves over time.
Currently, Ghana’s gold reserves stand at an impressive 8.74 metric tons, making it the eighth African country with the largest gold reserves on the continent. However, with the upward revision of the Bank of Ghana’s Domestic Gold Purchasing Program, the country’s gold reserves are expected to witness further growth, potentially surpassing Algeria, which currently holds the largest gold reserves on the continent at 174 metric tons. This development would mark a significant milestone for Ghana, solidifying its position as a prominent gold-holding nation in Africa.
The Bank of Ghana’s gold purchase program not only serves as a means to bolster foreign exchange reserves but also acts as a crucial tool in combating currency depreciation against major trading currencies. By diversifying its reserve assets and reducing reliance on other currencies, Ghana aims to strengthen its economic resilience and insulate itself from the volatility of global financial markets. The program’s success in accumulating gold reserves will contribute to Ghana’s overall financial stability and enable the country to navigate uncertainties in the international economic landscape.
Looking ahead, the Central Bank’s gold purchase program is expected to play an instrumental role in shaping Ghana’s economic trajectory. The program’s continued implementation, coupled with prudent monetary policies, will enable the country to build a robust reserve buffer, safeguard against currency depreciation risks, and foster sustainable economic growth. Furthermore, the increased gold reserves will enhance Ghana’s standing in the global financial arena, attracting investor confidence and promoting economic development.
The success of Ghana’s gold purchase program serves as a testament to the country’s commitment to prudent financial management and harnessing its valuable natural resources. As the program continues to yield positive results, stakeholders across sectors will keenly monitor the Central Bank’s progress in strengthening gold reserves and its broader implications for Ghana’s economic prosperity.
