The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has claimed a remarkable success of the central bank’s ‘Gold for Reserves’ programme, stating that it exceeded its reserve target by nearly US$1 billion in 2023.
Speaking at the sidelines of the ECCB 40th-anniversary celebrations and Central Banking Autumn meetings in Saint Kitts and Nevis, Dr. Addison outlined the plans to continue this domestic gold initiative to further strengthen reserves in 2024.
“2023 alone, we have been ahead of our reserve target by almost US$1 billion. So, we plan to continue with the domestic gold for reserves programme, and that should help in terms of building reserves going into 2024,” he said.
He emphasized the impact of the programme on stabilizing the currency, particularly in 2023. The Governor explained that the BoG’s gold-purchasing programme, initiated in 2021, had raised over US$1 billion, surpassing the IMF’s US$600 million disbursement since the beginning of 2023.
“The gold reserves programme has raised over US$1 billion compared with the IMF’s US$600 million disbursement since the start of 2023 – with another US$600 million due. So, it is a significant amount,” he noted.
The Gross International Reserves, excluding pledged assets and petroleum funds, witnessed a substantial increase, reaching US$2.5 billion (equivalent to 1.1 months of import cover) by the end of October 2023.
This surge from the December 2022 position of US$1.5 billion (0.6 months of import cover) was primarily attributed to the success of the gold for reserves programme.
Dr. Addison highlighted the challenging economic conditions faced by Ghana, where the currency depreciated sharply due to portfolio outflows and speculation about an IMF programme.
He further reiterated that the ‘Gold for Reserves’ initiative, implemented during the post-Covid period, has proven instrumental in steering the country out of the crisis.
