Ghana has approved a 5 billion cedi ($430 million) allocation to finance gold purchases as the country deepens its strategy of building bullion reserves to strengthen its foreign exchange position. However, the latest move also marks a significant shift in who bears the financial risk.
The funding, approved by Parliament, transfers responsibility for financing the government's domestic gold purchase programme from the Bank of Ghana to the state, with the newly established Ghana Gold Board (GoldBod) taking charge of the programme.
The change is intended to bolster Ghana's foreign exchange reserves and support the cedi by increasing the country's gold holdings. It also forms part of broader efforts to retain more value from Ghana's position as Africa's leading gold producer.
Until now, the central bank had led Ghana's domestic gold purchase programme, using locally sourced bullion to diversify reserves away from traditional foreign currencies.
The strategy has gained traction as gold prices have climbed to record highs, helping improve the country's reserve position and providing additional support for the cedi during periods of market volatility.
