We are ready to purchase gold locally to shore up reserves

The Bank of Ghana has launched a programme to purchase gold domestically.

The move the central bank says, will help shore up the country’s foreign reserves.

The Governor of the Bank of Ghana, Dr Ernest Addison, explained that this would enable the Bank of Ghana (BoG) to purchase gold from selected local aggregators and mining firms and pay in the local currency at the prevailing market price.

He indicated that the initiative will double the country’s gold holdings in the next five years from 8.7 tonnes to 17.4 tonnes.

“Other than the diversification benefits of gold for our reserves portfolio, the domestic gold purchase programme will pave the way for BOG to grow its foreign exchange reserves to foster confidence, enhance currency stability, create a more attractive environment for foreign direct investments and economic growth. This programme will also enable the Bank to leverage its gold holdings to raise cheaper sources of financing to provide short term foreign exchange liquidity.”

The also governor noted that the bank had engaged domestic mining firms in collaboration with the Ghana Chamber of Mines to buy refined gold from their refineries.

He said the domestic purchasing programme had the potential to improve the small-scale gold mining sector by ensuring they receive a fair purchasing price for their gold, provide an incentive to formalise and move away from damaging environmental and social practices.