Gold purchase programme stabilised cedi – BoG

The Bank of Ghana has credited the Domestic Gold Purchase Programme (DGPP) with significantly strengthening the country’s foreign reserves, stabilising the exchange rate, and helping to ease inflationary pressures.

Launched in 2021, the programme has become a key pillar of Ghana’s economic recovery strategy.

Its success contributed to the country’s recent credit rating upgrade from “restrictive default” to B- with a stable outlook in June 2025, bolstering investor confidence and improving Ghana’s economic outlook.

Speaking at CNVERGE ’25, Africa’s premier trade banking forum, First Deputy Governor of the Bank of Ghana, Dr. Zakari Mumuni, shared insights on the theme “Leveraging Commodities, The Central Bank’s View”.

He emphasised that the DGPP was designed not only to accumulate reserves but also to harness the full potential of Ghana’s rich commodity base for long-term economic resilience.

Providing an update on the programme’s performance as of June 2025, Dr. Mumuni revealed that the central bank had acquired 145.95 tonnes of gold since the programme’s inception.

Of this, 86.77 tonnes were sold to generate foreign exchange and shore up reserves, while the Bank’s physical gold holdings have increased sharply from 8.74 tonnes to 32.99 tonnes.

“On all fronts, the Domestic Gold Purchase Programme has delivered tangible results boosting reserves, supporting currency stability, and reducing inflationary pressure, these achievements were instrumental in the country’s credit rating improvement, which in turn has reinforced investor confidence in Ghana’s economic direction,” he said.

Dr. Mumuni underscored that the central bank views the DGPP as a strategic tool not just for short-term macroeconomic stability, but also as a long-term investment in national resilience through commodity-backed monetary policy.