As part of efforts to build a strong and resilient economy, the Bank of Ghana (BoG) is set to double the country’s gold reserves to a little over 17 tonnes through the Domestic Gold Purchase Programme.
The programme which was launched by the Central Bank in June 2021 started with a total gold stock of 8.74 tonnes. But the bank says it expected to double the stock by 2026.
“The Domestic Gold Purchase Programme’s primary objective is to double the existing stock of 8.74 tons over five years,” the Responsible Gold Sourcing Policy Framework document reveals. The effort is part of a broader strategy to ensure that Ghana’s foreign exchange reserves are more resilient and diversified.
According to the framework document, the initiative is not only about accumulating gold but also positioning the precious metal as a key asset to secure the country’s financial future.
Other strategic goals tied to the program include strengthening the country’s economic foundation and international credibility by increasing the Bank’s foreign exchange (FX) reserves, diversifying its reserves portfolio, and stabilising the currency to foster greater investor confidence.
This stability, in turn, is expected to attract more foreign direct investments (FDIs), spurring broader economic growth.
Checks by The High Street Journal reveal that the current average price of a metric tonne of gold is estimated at around US$85 million. Holding the price constant, with the anticipated 17 tonnes, the country is expected to gain a little over US$1.4 billion in reserves should the target be met.
As the five-year mark approaches, the DGPP is anticipated to play a pivotal role in transforming Ghana’s economy, not only through its direct impact on reserves but also through its ripple effects on investor confidence, currency stability, and economic growth.
