Speaking on JoyNews’ Newsfile, Mr Mercer said he was particularly pleased with the progress of the “GoldBod” initiative, which he explained leverages the domestic gold purchase programme originally introduced as a measure to manage economic challenges.

“I am happy, especially with the GoldBod work that they are doing, which essentially is leveraging the domestic gold purchase programme that was introduced as a measure to deal with our economic pressure that we were being confronted with at the time under the auspices of His Excellency Dr Mahamudu Bawumia,” he said on Saturday, January 10.

He noted that the programme has been strengthened, particularly through the enhancement of the Precious Minerals Marketing Company (PMMC) in collaboration with the Bank of Ghana, alongside additional measures aimed at improving the initiative’s effectiveness.

“Yes, they’ve improved it, they’ve beefed up PMMC, which was the programme in conjunction with the Bank of Ghana, and put in a few measures to strengthen what it is that we have started,” Mr Mercer added.

While acknowledging the political context surrounding government initiatives, he called for recognition of tangible achievements.

“So it is a good thing for Ghana. I am not the one to do politics for everything necessarily, but give credit where credit is due,” he remarked.

Dr. Zakari Mumuni noted that the sharp increase came at a time when the Bank of Ghana’s reserves stood at around 8.74 tonnes in June 2021.

Dr. Mumuni made this known at a programme in London on the Central Bank’s perspective on leveraging commodities.

He explained that the initiative has enabled the Bank to diversify its foreign exchange reserves portfolio and “leverage on the Bank’s gold holdings to raise cheaper short-term financing.”

“Ultimately, this programme was not just about reserve accumulation but also about unlocking the potential of the country’s commodity base,” he added.

Background

Launched in June 2021, the Bank of Ghana’s Gold Purchase Programme has significantly boosted the Central Bank’s gold reserves and diversified its assets.

The initiative was designed to increase reserves by purchasing gold from mining firms in Ghana and paying for it in Ghana cedis.

It also aimed to reduce the Bank’s reliance on the US dollar, which is often exposed to global market volatilities and shocks, compared to the relative stability of gold.

This followed concerns over Ghana’s low gold reserves and the urgent need to improve the situation.

According to July data, the Bank of Ghana’s gold reserves have reached 34.40 tonnes.

Impact of the Domestic Gold Purchase Programme

Dr. Mumuni disclosed that from the inception of the programme to June 2025, the Central Bank had purchased a total of 145.95 tonnes of gold. Out of this, 86.77 tonnes were sold for foreign exchange to bolster the Bank’s reserves.

Additionally, 27.63 tonnes of gold were used to settle 1.95 million metric tonnes of petroleum products under the Gold for Oil (G4O) initiative.

The First Deputy Governor noted that the Domestic Gold Purchase Programme has raised the Bank’s physical gold holdings from 8.74 tonnes in June 2021 to 34.40 tonnes currently.

source: Joy Business

He noted that the programme has also “improved the country’s credit profile from restrictive default to B- with a stable outlook in June 2025, boosting investor confidence.”

Dr. Zakari disclosed this at the CNVERGE’25 Africa Premier Trade Banking Programme in London, adding that these developments “have contributed to a stable macroeconomic environment, which is of critical interest to your work.”

BoG’s Gold Purchase Programme

Launched in June 2021, the Gold Purchase Programme aims to increase the Central Bank’s gold reserves and diversify its assets. It allows the Bank of Ghana to buy gold from local mining firms and pay them in Ghana cedis.

The initiative is part of efforts to reduce the Bank’s reliance on the US dollar, which is more vulnerable to global market shocks, compared to gold. It also addresses concerns about Ghana’s previously low gold reserves.

As of July, the Bank of Ghana’s gold reserves had reached 34.40 tonnes.

Gold for Oil Programme

Dr. Zakari also highlighted how the success of the Gold Purchase Programme paved the way for the Gold for Oil initiative, which “provides FX and gold to support the importation of petroleum products through government-to-government arrangements.”

He praised the programme for “securing petroleum imports at competitive prices, easing pressure on the forex market, and stabilising ex-pump petroleum prices.”

According to him, this has helped moderate “volatile ex-pump price pass-through effects on transport costs, and in turn, inflation.”

Source: Joy Business