The International Monetary Fund (IMF) has commended the introduction of the Domestic Gold Purchasing Programme (DGPP) and the positive impact it has had on the stability of the Ghanaian economy.
The DGPP, a brainchild of former Vice President, Dr Mahamudu Bawumia, was introduced in 2022 when Ghana’s economy was devastated by the impact of the global economic crisis, leading to the fall in value of the Cedi, rising cost of fuel and high inflation.
In the midst of the crisis, Bawumia proposed the Domestic Gold Purchase Programme to the Bank of Ghana to shore up Ghana’s gold reserves, which would then be used as buffer to control the exchange rate crisis, as well as rising cost of fuel.
The policy saw instant impact, as Ghana’s gold reserves dramatically increased from about 8 tonnes to 30 tonnes in two years, leading to the value of the Cedi seeing a decline by 2024 from almost 17 to 14, as well as fuel prices dropping.
Speaking at a press briefing in Washington, the IMF said the DGPG played a significant role in stabilising the economy during the economic crisis Ghana went through.
Director of Communications of IMF, Julie Kozack acknowledged how the gold purchasing programme contributed to improving international reserves and reducing pressure on the Cedi.
“On the benefit side, what we see is a contribution to a buildup of international reserves and reduced pressure on the foreign exchange market during a difficult period for Ghana,” the IMF Director said of the Domestic Gold Purchasing Programme.
As she commended the impact of the programme, she also expressed concern over recent associated losses and recommended greater transparency and risk management.
Source:
www.ghanaweb.com
