Economist and political risk analyst, Dr. Theo Acheampong, is offering a clear roadmap on how the government can protect Ghana’s Domestic Gold Purchase Programme, make it more effective, transparent, and ensure it truly supports the cedi and the wider economy.
These recommendations from the economist follow his econometric analysis of the relationship between rising prices and reserve accumulation. His analysis reveals that Ghana’s gold programme is mainly driven by clear policy and not by the whims and caprices of the rising prices.
With these findings, he believes there is a need for the government to tie up all loose ends to make the programme water-tight to reap the benefits it promises the economy and Ghanaians.
At the heart of his recommendations is the notion that without clear rules, even a well-intended policy can lose public trust and create economic risks. He therefore makes four recommendations to improve the programme.
Buy Gold Steadily, Not Emotionally
Dr. Acheampong argues that Ghana should follow a clear purchase rule. This means buying gold steadily over time, instead of rushing to buy more whenever global prices rise. This calm and predictable approach avoids panic decisions and protects the Bank of Ghana from price shocks.
He noted that “Clear 𝗽𝘂𝗿𝗰𝗵𝗮𝘀𝗲 𝗿𝘂𝗹𝗲 (steady accumulation)” is very critical in making the programme effective.
Manage Cedi Liquidity Carefully
The economist adds that buying gold injects cedis into the economy. He therefore stresses the need for a clear liquidity rule to decide when and how excess cedis are removed from circulation.
If this is not managed well, he fears inflation could rise and weaken household purchasing power.
He calls for a “Clear 𝗹𝗶𝗾𝘂𝗶𝗱𝗶𝘁𝘆 𝗿𝘂𝗹𝗲 (how and when cedi liquidity is sterilised, taking into account inflation targeting).”
Be Clear on When and How FX Is Sold
Another key recommendation by the economist is a transparent foreign exchange sales rule. Ghanaians and investors should clearly understand how gold reserves are used to supply dollars to the market.
When FX sales are rule-based and predictable, businesses can plan better, investors gain confidence, and the cedi becomes less volatile.
“Clear 𝗙𝗫 𝘀𝗮𝗹𝗲𝘀 𝗿𝘂𝗹𝗲 (how reserves are used to supply FX in a transparent and market-neutral manner),” he further advocated.
Protect the Programme with Strong Governance
Dr. Acheampong calls for independent audits, transparent selection of gold aggregators and assayers, and strict tracking of where gold comes from.
This helps prevent corruption, protects the environment, and reassures citizens that Ghana’s gold is not being misused or smuggled through weak oversight.
The Bottomline
Taken together, the economist believes these measures would help Ghana run a gold programme that is stable, transparent, and trusted.
According to Dr. Acheampong, such discipline is essential if gold is to remain a reliable anchor for reserves, foreign exchange support, and long-term economic confidence.
