Gold strategy, stable currency: BoG charts path for economic recovery
THE Bank of Ghana (BoG) is taking decisive steps to strengthen its financial position and boost the nation’s economic foundations.
The Governor, Johnson Pandit Asiama, has revealed that reducing the cost structure of the Domestic Gold Purchase Programme is expected to significantly reinforce the central bank’s finances from 2026 onwards.
Speaking before the Parliamentary Select Committee on Economy and Development in Accra yesterday, Dr Asiama said the reforms aim to improve the efficiency and sustainability of a programme that has become central to Ghana’s economic strategy.
By boosting gold reserves and strengthening external sector stability, the initiative has increasingly served as a critical tool for national economic security.
Under the new arrangement, the government will shoulder part of the programme’s operational costs, easing the financial burden on the Bank.
Dr Asiama said, combined with improving macroeconomic conditions, these measures are expected to gradually enhance the Bank’s financial outlook.
“Taken together, these developments are expected to progressively strengthen the Bank’s financial position while supporting the country’s reserve accumulation strategy,” he emphasised.
The Governor explained that stabilising exchange rates will narrow the gap between market rates and the Bank’s reference rate, reducing the accounting costs of domestic gold purchases.
Greater currency stability will also limit large valuation swings on the Bank’s foreign currency assets, shielding the economy from unnecessary financial shocks.
The Domestic Gold Purchase Programme forms part of broader BoG initiatives to build stronger external buffers and inspire confidence in Ghana’s economic future.
For a nation celebrated as one of the world’s leading gold producers, such strategic use of the sector is both prudent and visionary.
Dr Asiama also reflected on Ghana’s broader economic progress. Inflation, which soared above 23 per cent at the end of 2024, has now dropped to 3.3 per cent — one of the lowest levels in recent history.
The cedi has stabilised, credit growth is recovering, and the banking sector remains resilient.
“For ordinary Ghanaians, the real measure of this progress is simple: prices are stabilising, the cedi is steadier, and the economy is moving back toward normal,” he said.
Looking ahead, the Bank remains alert to global risks, including shifts in international financial conditions and commodity price volatility.
From the Governor’s presentation, Ghana is making tangible progress, but citizens, investors, and policymakers must remain engaged.
The Ghanaian Times is of the view that government support for BoG initiatives should continue alongside transparency and efficiency.
Public awareness of macroeconomic policies must grow to strengthen confidence.
Close monitoring of global economic trends, stabilising the cedi, controlling inflation, and supporting credit growth are all essential to turn reforms like the Domestic Gold Purchase Programme into lasting benefits for ordinary Ghanaians.
Dr Asiama’s reforms signal a brighter economic future. With careful stewardship and active public participation, Ghana can achieve stronger reserves, a steadier cedi, and a more stable economy—outcomes that will benefit all Ghanaians.
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