BoG flags sustainability concerns over Domestic Gold Purchase Programme

The Bank of Ghana has signalled a deeper policy review of its Domestic Gold Purchase Programme, even as it maintains that the initiative remains critical to macroeconomic stability and reserve accumulation.

Opening the 128th Monetary Policy Committee (MPC) meeting, Governor Dr. Johnson Pandit Asiama said the programme has played a “deliberate” and important role in strengthening Ghana’s external buffers, but cautioned that its future use must now be assessed more carefully.

“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,” the Governor stated.

The remarks suggest that while the central bank is not stepping away from the gold purchase strategy, it is increasingly focused on ensuring that the programme does not create long-term balance sheet risks or undermine broader monetary policy objectives.

The Domestic Gold Purchase Programme has been a key contributor to Ghana’s improved external position, particularly amid favourable global gold prices, helping to bolster foreign reserves and support cedi stability in 2025.

However, Dr. Asiama’s comments indicate that the MPC will now weigh how the scale and timing of gold purchases align with inflation trends, reserve targets, and overall policy credibility, especially ahead of heightened external scrutiny under Ghana’s IMF-supported programme.

Analysts say any recalibration of the programme could have implications for reserve management, foreign exchange liquidity, and market confidence, making it one of the more closely watched issues in the MPC’s 2026 policy deliberations.

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