The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, says the reduction in the cost structure of its Domestic Gold Purchase Programme is a move expected to significantly strengthen the central bank’s financial position from 2026 and beyond.
He said the reforms formed part of ongoing measures to improve the efficiency and sustainability of the Gold Purchase Programme, which had become a key national initiative aimed at boosting the country’s gold reserves and strengthening external sector stability.
Dr Asiama disclosed this on the second day of his appearance before the Parliamentary Select Committee on Economy and Development at the Parliament House in Accra yesterday.
He explained that under the new arrangement, the government would partner with the BoG to carry a portion of the programme’s operational costs to ease the financial burden on the central bank.
Dr Asiama noted that the cost adjustments, together with improving macroeconomic conditions, were expected to gradually enhance the Bank’s financial outlook over the medium term.
The governor explained that as exchange rate conditions stabilised, the gap between —Dr Asiama market exchange rates and the bank’s reference rate, which contributed to the accounting cost of domestic gold purchases, was expected to narrow.
This development, he stated, would help reduce the financial impact associated with acquiring gold under the programme.
Dr Asiama indicated that greater stability in the exchange rate environment would help limit large valuation swings on its foreign currency assets.
According to him, while exchange rate movements could create accounting valuation effects in the bank’s financial statements, a more stable currency environment would reduce the magnitude of such fluctuations over time.
“Taken together, these developments are expected to progressively strengthen the bank’s financial position while supporting the country’s reserve accumulation strategy,” he emphasised.
The Domestic Gold Purchase Programme forms part of broader efforts by the BoG to build stronger external buffers and enhance confidence in the economy. Officials say the initiative has increasingly become an important tool in safeguarding macroeconomic stability while leveraging Ghana’s position as a leading gold producer.
Touching on macroeconomic developments, the governor revealed that the country had made significant progress in restoring stability following the economic challenges experienced in recent years.
He noted that inflation had declined sharply from above 23 per cent at the end of 2024 to 3.3 per cent currently, one of the lowest levels recorded in recent history.
According to him, the exchange rate had stabilised, credit growth was recovering, and the banking sector remained resilient.
“For ordinary Ghanaians, the real measure of this progress is simple: prices are stabilising, the cedi is steadier, and the economy is moving back toward normal,” he underlined.
Looking ahead, Dr Asiama expressed optimism about the economic outlook, citing lower inflation, stronger external buffers, and improving financial sector conditions as key factors supporting sustained economic recovery.
He, however, noted that the bank remained mindful of global risks, including shifts in international financial conditions and commodity price volatility.
Dr Asiama assured that the Bank of Ghana would continue to pursue a prudent, disciplined, and data-driven approach to monetary policy to safeguard macroeconomic stability.
BY KINGSLEY ASARE & BENJAMIN ACTON TETTEY
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