The Bank of Ghana’s (BoG) Domestic Gold Purchase Programme has been pivotal in stabilising the cedi and easing inflation, while improving Ghana’s credit profile. This is according to First Deputy Governor Dr. Zakari Mumuni.
Speaking at CNVERGE’25, Africa’s premier trade banking forum in London, Dr. Mumuni credited the initiative with helping lift the country’s sovereign credit rating from “restrictive default” to B- with a stable outlook in June 2025, a shift he said has “boosted investor confidence” and contributed to a “stable macroeconomic environment.”
Launched in June 2021, the Domestic Gold Purchase Programme allows the BoG to buy gold from local mining firms in Ghana cedis, building reserves while reducing reliance on the US dollar, which is more exposed to global market volatility. As of July, Ghana’s gold reserves had risen to 34.40 tonnes, a marked improvement from historically low levels.
The strategy aims to leverage the nation’s gold wealth not merely as an export commodity but as a monetary asset to safeguard stability and policy flexibility.
Gold for Oil Synergy
Dr. Mumuni also revealed that the programme’s success laid the groundwork for the Gold for Oil (G4O) initiative, launched in 2022. The scheme “provides FX and gold to support the importation of petroleum products through government-to-government arrangements,” securing fuel imports at competitive prices.
According to him, G4O has “eased pressure on the forex market, stabilised ex-pump petroleum prices,” and moderated “volatile ex-pump price pass-through effects on transport costs, and in turn, inflation.”
For analysts, BoG’s gold strategy represents a rare example of a commodity-led policy delivering tangible macroeconomic benefits in a frontier market. By integrating gold directly into reserve management and trade facilitation, the Central Bank is hedging against currency shocks while creating a more resilient macroeconomic base.
