Gold Purchase Programme boosts Ghana's foreign reserves

Ghana’s central bank confirmed its Domestic Gold Purchase Programme (DGPP) has strengthened the nation’s foreign exchange reserves. The programme also supported stability in the foreign exchange market. This information comes from the Bank of Ghana’s (BoG) 2025 financial statements.

The DGPP has helped stabilize Ghana’s foreign exchange market by strengthening reserve buffers. It has also reduced structural pressures on foreign currency demand. The domestic acquisition of gold allowed the BoG to increase foreign exchange reserves without using the domestic foreign exchange market. This process eased pressure on the Ghana cedi (GHS).

This initiative fits into Ghana's larger economic strategy to build resilience against external shocks. The country has faced significant economic challenges, including cedi depreciation and debt sustainability concerns. The DGPP represents a deliberate move to reduce dependence on foreign aid and diversify reserve assets. Gold prices globally have shown upward trends, making gold a strategic asset for reserve management.

Dr. Johnson Asiamah, an expert cited in the Chronicle Ghana publication, stated the programme has contributed to stabilizing the foreign exchange market. The BoG’s report indicates that converting gold into monetary gold has improved reserve adequacy. This enhanced the Bank’s capacity to support the market with liquidity during difficult times.

The programme began on June 17, 2021. It was a direct response to macroeconomic pressures. These pressures included low foreign exchange buffers, exchange rate volatility, and reduced investor confidence. Under the DGPP, the BoG buys refined gold from mining companies. It also acquires dore gold for refining into monetary gold. Furthermore, it buys gold through the Ghana Gold Board for export to generate foreign exchange.

Income from gold-related transactions contributed to the Bank’s policy solvency position in 2025. Despite this, the Bank of Ghana reported a GHS 15.63 billion loss for 2025. This is compared with a GHS 9.49 billion loss in 2024. Its negative equity position also widened to GHS 93.82 billion from GHS 58.62 billion in the previous year. The Bank, however, stated it remained policy solvent, recording GHS 5.5 billion in operating income after open market operations costs. This compares to GHS 793.5 million in 2024.

Looking ahead, the government’s recapitalization programme will be crucial. This programme, agreed with the Ministry of Finance, aims to restore the central bank's capital base. This support will unfold over the medium term. The stability provided by the DGPP will be vital as Ghana navigates its economic recovery. Market participants and policymakers will closely monitor the cedi’s performance and the effectiveness of these measures.