Bank of Ghana's Gold Purchase Programme: A Strategic Response to Economic Challenges

The Bank of Ghana (BoG) has made significant strides in stabilizing the economy through its Domestic Gold Purchase Programme (DGPP), initiated in 2021. Governor Dr. Johnson Pandit Asiama reported that the program has successfully mobilized over $17 billion in gold value, with approximately 100 tonnes contributing nearly $10 billion in foreign exchange in 2025 alone. This initiative was launched in response to declining foreign exchange reserves and aims to enhance market liquidity rather than generate profit. Despite facing cumulative losses of GHS4.893 billion since its inception, the program remains pivotal for reserve accumulation and foreign exchange diversification.

In light of past losses attributed to timing issues, foreign exchange effects, and transaction costs, the BoG has implemented tighter controls and reduced transaction fees to improve the program's sustainability. Transaction costs have been slashed to about 1.7%, and major reforms are planned for 2026 to further enhance operational efficiency. Dr. Asiama emphasized that all transactions are conducted at market prices, countering claims of selling gold at a loss.

The Governor has called for a unified national response to address the challenges facing the Gold-for-Reserves (G4R) program, highlighting the need for collaborative reforms and timely budget allocations to ensure the program's long-term viability. The BoG's total gold holdings have reached 110.99 tonnes, valued at approximately $11.399 billion, underscoring the importance of this initiative in bolstering Ghana's economic resilience amid ongoing financial pressures.