Bank of Ghana Signals Review of Domestic Gold Purchase Programme Amid Policy Calibration

Accra, Ghana — The Bank of Ghana has indicated it will conduct a deeper review of its Domestic Gold Purchase Programme, reaffirming the initiative’s importance to macroeconomic stability while stressing the need for careful policy calibration.

Opening the 128th Monetary Policy Committee (MPC) meeting, Governor Dr. Johnson Pandit Asiama described the programme as having played a “deliberate and important” role in strengthening Ghana’s external buffers. However, he emphasized that future deployment must be assessed to mitigate potential balance sheet risks and ensure alignment with broader monetary objectives.

“The role of the Domestic Gold Purchase Programme in supporting stability remains critical. While the programme has played an important and deliberate role in strengthening external buffers, members will need to consider how its timing, sustainability, and balance-sheet implications should inform the calibration of policy and the ongoing policies to build reserves,” Dr. Asiama said.

The remarks signal that the Bank is not abandoning its gold purchase strategy, but is increasingly focused on ensuring the programme supports reserve accumulation without undermining inflation targets or long-term financial stability.

The Domestic Gold Purchase Programme has been a major contributor to Ghana’s improved external position, particularly amid favorable global gold prices in 2025. By bolstering foreign reserves, it has helped maintain cedi stability and supported investor confidence during periods of currency volatility.

Looking ahead, the MPC will evaluate how the scale and timing of gold acquisitions interact with inflation trends, reserve targets, and Ghana’s commitments under its IMF-supported programme. Analysts note that any recalibration could influence reserve management, foreign exchange liquidity, and market sentiment, making the programme one of the key issues in the central bank’s 2026 policy agenda.

“The Bank of Ghana is sending a signal that reserve accumulation and monetary stability remain top priorities, but with a sharper eye on sustainability and long-term policy credibility,” said a senior economist in Accra.

As Ghana navigates external pressures and evolving macroeconomic dynamics, the Domestic Gold Purchase Programme will continue to be a closely watched instrument, balancing the dual objectives of strengthening reserves and maintaining financial stability.

Source: Accra Business News