Central Bank of Ghana (BoG) would increase its gold holdings 12.2 tonnes by close of year.
This is because Gold producing member companies of the Ghana Chamber of Mines will sell about 125,000 ounces of gold the equivalent of 3.5 tonnes of gold to the Bank of Ghana (BoG) under the central bank’s Domestic Gold Purchase Programme.
This will increase BoG’s gold holdings from the existing 8.7 tonnes to 12.2 tonnes by end of this year.
The plan is to double its gold holdings in the next five years from 8.7 tonnes the equivalent 306,883 ounces to 17.4 tonnes the equivalent 613,766.9 ounces.
Already, Newmont Ghana had sold 3,500 ounces of gold to the Bank of Ghana as part of the programme.
The announcement followed a meeting between Vice-President Alhaji Dr. Mahamudu Bawumia, some other members of the Economic Management Team, (BoG), the Ministry of Lands and Natural Resources, Minerals Commission, PMMC as well as the leadership of the Chamber.
It was to consider the implementation of the BoG’s Gold Purchase Programme in the light of the country’s economic challenges.
Dr. Bawumia noted after the meeting that “it was agreed that to help shore up the foreign exchange reserves of the Bank of Ghana, starting September 1, BoG will purchase a portion of the output of the gold mining companies on a continuous basis at world market prices, but payment will be made in Ghana cedis”.
He stated that this will represent a significant and sustainable addition to Ghana’s foreign exchange reserves over time and strengthen the country’s balance of payments position.
President of the Chamber, Joshua Mortoti stated that “as good corporate citizens the Chamber supports the programme”. Noting that the Gold Purchase Programme will be mutually beneficial to all stakeholders.
On his part, the Chief Executive Officer of the Chamber, Dr. Sulemanu Koney, stated that members of the Chamber will further engage the Central Bank to fast-track the implementation of the programme.
Discussions on the Gold Purchase Programme started in 2020 between the BoG and gold producing member companies of the Chamber to support the Ghana’s foreign exchange reserves.