Ghana builds excess of $1bn in reserves from gold purchase programme, others - BoG

The Bank of Ghana has said the country has built up about US$1.0 billion in reserves, mainly coming from its gold purchase programme and settlement of short-term liabilities.

According to Governor of the Central Bank, Dr Ernest Addison, the development covers the beginning of this year to June 2023.

Addressing journalists at the 113th MPC press briefing on July 24, 2023, Dr Ernest Addison noted that Gross International Reserves (excluding encumbered assets and petroleum funds) improved to US$2,353.95 million which is equivalent to 1.1 months of import cover, compared with US$1,440.0 million (0.6 months of import cover) recorded at the end of December 2022.

“The Bank’s Domestic Gold Purchase Programme was launched in June 2021 with the key objective of shoring up the Bank of Ghana’s foreign reserves by purchasing domestically produced gold and converting same into foreign assets (monetary gold)," the Governor said.

He continued, "Since inception of the programme, a total of 7.73 tons of monetary gold, valued at 7 approximately US$480 million, has been added to reserves under the Gold for Reserves programme, well ahead of the target of doubling the gold holdings in 5 years.”

Meanwhile, the Monetary Policy Committee of the Bank of Ghana hiked the policy rate from 29.5 percent to 30 percent.

This represents a 0.5 percentage points increment based on risks to the inflation profile which are judged to be elevated and driven by second round effects of food prices.

MA/NQ

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