GoldBod and DGPP stabilized cedi, boosted reserves – BoG Governor

Central Bank says domestic gold purchase programme strengthened foreign exchange buffers but must now evolve into a shared national priority.

Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has stated that the GoldBod initiative and the Domestic Gold Purchase Programme (DGPP) played a decisive role in stabilising the cedi and rebuilding Ghana’s foreign exchange reserves during a period of severe macroeconomic stress.

Speaking at the 77th Annual New Year School and Conference held at the University of Ghana, Dr. Asiama explained that the DGPP was introduced at a time when Ghana’s economy faced acute vulnerability, marked by weak external buffers and fragile market confidence.

“The Domestic Gold Purchase Programme was introduced at a moment of acute vulnerability, when foreign exchange buffers became thin and confidence was fragile,” the Governor said.

According to him, the objective of the programme was clear: to strengthen reserves, stabilise the currency, and create space for macroeconomic recovery by leveraging Ghana’s gold resources. He noted that, when assessed against these stabilisation goals, the programme delivered meaningful results.

“Judged against its stabilisation objective, the programme played a vital role,” Dr. Asiama stated.

He stressed that GoldBod is no longer merely a policy proposal, but a fully operational institution embedded within Ghana’s macroeconomic framework. The initiative, he said, has reshaped how the country captures value from its gold resources while supporting reserve accumulation.

“GoldBod is no longer a concept; it is operational. It is embedded within our macroeconomic framework,” the BoG Governor emphasised.

Dr. Asiama, however, was candid about the costs associated with the programme, revealing that the Bank of Ghana deliberately absorbed the financial burden of implementing the DGPP in the broader national interest.

“It is also important to be candid: this stability came at a cost. The Bank of Ghana had to carry the financial burden of a national strategic policy taken in the national interest,” he said.

To improve sustainability and accountability, the Governor disclosed that several refinements were made to the programme in 2025. These included the cancellation of the G4O arrangement and adjustments to aspects of the G4R framework. Governance, transparency, and risk management were also strengthened, particularly within the artisanal and small-scale gold trading segment.

Settlement risks, he noted, were reduced through payment-before-release requirements and the ring-fencing of offtake proceeds, while pricing structures were improved through reductions in discounts, agent fees, and assay charges.

In addition, Dr. Asiama highlighted the introduction of a Gold FX Auction mechanism, which he said has enabled more structured and transparent intermediation of gold-related foreign exchange flows.

Looking ahead to 2026, the Governor said responsibility for the DGPP must be broadened beyond the central bank to ensure long-term sustainability.

“As we move into 2026, the G4R programme must be anchored more firmly within the broader Government of Ghana framework as a national priority,” he stated.

He announced that the Bank of Ghana, in collaboration with GoldBod and the Ministry of Finance, plans to convene a policy workshop with experts and market practitioners to further refine the programme in line with best practices.

Dr. Asiama concluded by encouraging informed, evidence-based debate, noting that national economic interventions must evolve as conditions change to remain effective and credible.