- Bank of Ghana boosts holdings to 36 tonnes in 2025
- Gold strategy credited with supporting cedi strength
ACCRA, GHANA – Ghana’s central bank has raised its gold reserves by nearly a fifth since January, accelerating efforts to strengthen the cedi and fortify the country’s external buffers.
Data released by the Bank of Ghana show reserves hit 36.02 tonnes in August, up from 30.53 tonnes at the start of the year. The buildup marks a striking turnaround from May 2023, when holdings were just 8.78 tonnes.
The increase has been driven by the Domestic Gold Purchase Programme, which the Bank says is now central to monetary management.
“The gold accumulation programme is an essential tool in our efforts to diversify reserve assets, reduce exposure to global financial volatility, and provide the economy with more robust buffers against external shocks,” the Bank said in an earlier statement.
A hedge for stability
Governor Johnson Pandit Asiama said the strategy extends beyond gold to a broader basket of reserves, but confirmed the Bank will begin hedging part of its bullion holdings with commercial lenders.
“Our objective is to hedge a portion of our gold holdings, and we anticipate that within the next month, we should be able to implement this strategy,” Asiama told reporters after the Monetary Policy Committee’s 125th meeting in July.
He stressed that “international reserves” encompass both gold and foreign currency assets, forming a key line of defence against volatility.
The Bank maintains a floor for reserves at three months of import cover. “At present, our reserves are well above that threshold,” Asiama said. “The current level strengthens our external resilience and provides a comfortable buffer to safeguard the economy should future shocks arise.”
He dismissed concerns that the rapid build-up might be excessive: “We do not have an upper limit for reserves, but we are very mindful of not slipping below the minimum benchmark.”
Boost for the cedi
The accumulation has coincided with gains for the local currency, which has appreciated 20.35% against the US dollar so far this year despite bouts of pressure. Traders credit the gold strategy and stronger reserves for boosting investor confidence.
Mining firms are also playing a role in the effort. While the central bank purchases bullion directly for reserves, companies supply foreign exchange that the Bank deploys in the market to smooth volatility when required.
