BoG: Gold purchase programme contributed immensely to stabilising economy
The Bank of Ghana (BoG), in June 2021 launched the Gold Purchase Programme to augment the country’s foreign reserves
The governor of the Bank of Ghana, Dr Ernest Addison has said the domestic gold purchase programme has contributed immensely to stabilising the economy.
The Bank of Ghana (BoG), in June 2021 launched the Gold Purchase Programme to augment the country’s foreign reserves.
The programme has since paved the way for BoG to grow its foreign exchange reserves to foster confidence, enhance currency stability, and create a more attractive environment for foreign direct investment and economic growth.
Speaking in an interview with Christopher Jeffery of centralbanking.com, Addison said the implementation of the programme was long overdue.
“We had never focused on the gold part of reserves, always holding the same 8.7 tonnes or so for the last 40 to 50 years. We realised we were producing a lot of gold. There is a lot of activity out there. So, the question then came up as to why not buy more gold to increase our reserves,” he said.
“It was one of those moments when an obvious policy that could have been implemented several years ago appears to make a lot of sense, especially during the post-COVID period when we were looking at several ways to manage the crisis. We started it in 2021.”
“Yes, it has a material impact in helping to stabilise the currency, especially this year. That’s because the gold reserves programme has raised over US$1 billion, compared with the IMF’s US$600 million disbursement since the start of 2023 – with another US$600 million due in November/December. So, it is a significant amount,” Addison added.
Reporting by Fred Dzakpata in Accra
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