The Bank of Ghana (BoG) and the Ghana Gold Board (GoldBod) are finalising a new financing arrangement aimed at supporting the country's gold purchasing programme while reducing pressure on the central bank's balance sheet.

Speaking after the Monetary Policy Committee (MPC) meeting, Bank of Ghana Governor Dr. Johnson Pandit Asiama said discussions with GoldBod are ongoing, adding that a decision on the new funding model will be announced soon.

"We are still in discussions with them. From where we are now, GoldBod has a number of choices. Either government takes up its funding entirely, or a resort to the markets to fund it. We are still discussing that context with the Gold Board, and I'm sure the market will be informed very soon," he said.

According to the Governor, regardless of the financing option eventually adopted, the Bank of Ghana will continue to play a role in supporting the country's gold accumulation programme.

Responding to a question on whether the new arrangement would complement the Bank's existing gold purchase programme, Dr. Asiama responded in the affirmative.

He explained that the proposed changes form part of broader reforms designed to protect the Bank of Ghana's financial position while preserving the benefits of the domestic gold purchase programme.

"Remember last year, the impact on our financials was quite significant. Since then, a number of steps have been taken, and this change is actually part of the reforms so that we continue to benefit from the activities of GoldBod, but at the same time, we stem the impact on the central bank's balance sheet," the Governor stated.

The comments suggest the central bank is seeking a more sustainable funding model for GoldBod's operations as Ghana expands its domestic gold purchasing programme. The Governor indicated that the preferred financing structure is expected to balance the need to support gold purchases with efforts to safeguard the Bank of Ghana's balance sheet and maintain macroeconomic stability.

The Bank of Ghana is expected to provide further details once consultations with GoldBod and other stakeholders are concluded.