1.14 billion dollars, or 17.89 tons, of gold have been bought by the Bank of Ghana since the start of the Domestic Gold Purchase Programme (DGPP).

This is significantly above the program’s original goal and more than twice the amount of gold reserves held by the Central Bank.

The program’s goal, according to Dr. Ernest Addison, Governor of the Bank of Ghana, is to replenish reserves, stabilize the foreign exchange market, and subsequently aid in the deflationary process.

He stated that the first goal of the DGPP is to double gold holdings in the foreign exchange reserves within five years while speaking to bankers and other officials at the Chartered Institute of Bankers Governors Day.

Speaking about the “Gold for Oil” program, Dr. Ernest Addison also mentioned how it has assisted in lowering the need for US dollars among bulk oil distribution companies (BDCs), who would have otherwise obtained foreign exchange from the market in order to import petroleum products.

He stated that a total of $14.23 tons, or $907 million, of gold have been bought so far in order to pay for the import of petroleum products through barter.

He continued by saying that the program had an effect on the Central Bank’s cash flow, supported the local currency, and helped keep ex-pump prices stable.

He noted that all of these had provided some encouraging signs of a slow but steady turnabout in the economy in line with recent macroeconomic data.

“This follows the 11 implementation of sound macroeconomic policies, successful completion of the domestic debt restructuring, and a wide range of structural reforms. Indications are that sustained policy efforts are needed to firm up the emerging stability and growth”, he concluded.