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BoG’s gold purchase programme key to cedi stability, inflation control — First Deputy Governor

Ghana cedi

First Deputy Governor of the Bank of Ghana, Dr. Zakari Mumuni, has credited the Central Bank’s Gold Purchase Programme with playing a pivotal role in stabilising the cedi and easing inflationary pressures in recent months.

Speaking at the CNVERGE’25 Africa Premier Trade Banking Programme in London, Dr. Zakari noted that the initiative has also significantly “improved the country’s credit profile from restrictive default to B- with a stable outlook in June 2025, boosting investor confidence.”

“These developments,” he said, “have contributed to a stable macroeconomic environment, which is of critical interest to your work.”

Launched in June 2021, the Gold Purchase Programme was designed to build up the Bank of Ghana’s gold reserves and diversify the country’s asset portfolio. The scheme enables the Central Bank to purchase gold from local mining companies and pay them in Ghana cedis.

By increasing gold reserves, the programme aims to reduce the Bank’s reliance on the US dollar — a currency more susceptible to global market volatility — while also addressing Ghana’s historically low gold holdings. As of July 2025, Ghana’s gold reserves had risen to 34.40 tonnes.

Dr. Zakari explained that the initiative’s success laid the foundation for the government’s Gold for Oil programme, which leverages gold reserves to support the importation of petroleum products through government-to-government arrangements.

“The Gold for Oil programme has been instrumental in providing FX and gold to secure petroleum imports at competitive prices,” he stated. “This has eased pressure on the foreign exchange market, stabilised ex-pump petroleum prices, and moderated volatile price pass-through effects on transport costs — and by extension, inflation.”

The First Deputy Governor further stressed that the programme’s impact on price stability has been a critical factor in restoring market confidence. He urged continued support for policies that strengthen Ghana’s reserves and reduce vulnerability to external shocks.

The Gold Purchase Programme remains a cornerstone of the Bank of Ghana’s broader economic strategy, aimed at shielding the economy from currency volatility, lowering inflation risks, and ensuring long-term macroeconomic stability.