The Bank of Ghana (BoG) has significantly increased its gold holdings, with reserves rising from 19.5 tonnes in December 2023 to 30.5 tonnes by December 2024.
This represents a substantial addition of 11 tonnes to the central bank’s gold reserves within a single year.
At current market values, the BoG’s gold reserves are estimated to be worth approximately $2.72 billion.
This sharp increase in gold reserves is part of the BoG’s broader strategy to enhance Ghana’s financial stability, strengthen the local currency (the cedi), and reduce the country’s reliance on foreign currencies, particularly the US dollar.
The central bank’s efforts align with its goal of building a more resilient and self-sufficient economy.
The growth in Ghana’s gold reserves is largely attributed to two key initiatives: the Domestic Gold Purchase Programme (DGPP), which focuses on sourcing gold locally, and the Gold for Oil policy, which allows Ghana to use its gold reserves to purchase oil.
This strategy reduces pressure on foreign exchange reserves and supports the cedi.
Additionally, these programs were designed to leverage Ghana’s abundant natural resources to stabilize the economy and reduce external vulnerabilities.
Meanwhile, some economic experts have welcomed the BoG’s gold accumulation strategy, noting that it provides a stronger buffer for Ghana’s financial system.
They believe that the upward trend in gold acquisitions will enhance the country’s ability to navigate global economic challenges, such as fluctuating commodity prices and geopolitical tensions.
As the BoG continues to build its gold reserves, the move is expected to reinforce investor confidence, support the cedi, and provide a solid foundation for the country’s economic future.
ID/MA
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