The Ghana Chamber of Mines has revealed that its member companies sold a total of 358,218 ounces of gold to the Bank of Ghana (BoG) in 2024 under the government’s Domestic Gold Purchase Programme, a strategic move that bolstered the central bank’s reserves and contributed to the appreciation of the Ghana cedi.
The disclosure was made by the Chamber’s Chief Executive Officer, Ing. Dr. Kenneth Ashigbey, during a press briefing in Accra.
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He said the gold sales were part of broader industry efforts to support macroeconomic stability and help strengthen the local currency amid external pressures.
Gold-backed stability
According to Dr. Ashigbey, the gold sold to the BoG formed a critical component of the central bank’s reserve assets and has played a direct role in reversing the depreciation trend of the cedi against major international currencies—particularly the US dollar.
“The strength of the cedi today is predominantly based on gold,” Dr. Ashigbey stated.
“As an industry, we have an agreement through which, last year, we sold 358,218 ounces of gold to the Bank of Ghana under the Domestic Gold Purchase Programme.”
The Domestic Gold Purchase Programme was introduced by the BoG in 2021 to build up gold reserves as part of efforts to reduce the country’s reliance on foreign exchange for the importation of petroleum products and other essential goods.
The programme also aims to improve the central bank’s ability to intervene in the foreign exchange market.
Voluntary support continues
Beyond the formal gold sale initiative, Dr. Ashigbey revealed that mining companies are also participating in a Voluntary Forex and Gold Purchase Initiative, further boosting the BoG’s foreign reserves.
“We also continue to support the Bank through the Voluntary Forex and Gold Purchase Initiative, which has boosted its reserve position and helped strengthen the cedi,” he said.
He emphasized that these interventions have gone a long way in stabilizing Ghana’s economy and underscored the Chamber’s ongoing commitment to national development.
“It’s important that we highlight these efforts and how they support both the national economy and our industry,” he added.
Mining industry’s vital role
The mining sector, which remains one of Ghana’s top foreign exchange earners, continues to demonstrate its strategic importance not only through export revenue but also through domestic financial stability initiatives.
The Chamber’s collaboration with the central bank is viewed as a model for resource-backed economic policies, particularly in developing economies grappling with currency volatility and reserve shortfalls.
The BoG has in recent months attributed part of the cedi’s improved performance to increased gold inflows, allowing it to maintain adequate liquidity in the foreign exchange market and reduce the pressure on the local currency.
