Since the inception of the Domestic Gold Purchase Programme (DGPP), the Bank of Ghana has purchased 17.89 tons of gold, equivalent to $1.14 billion.

This is more than double the level of the Central Bank’s gold reserves and well ahead of the initial target of the programme.

According to the Governor of the Bank of Ghana, Dr. Ernest Addison, the objective of the programme is to rebuild reserves, stabilise the foreign exchange market, and in turn, support the disinflation process.

Addressing bankers and other officials at the Chartered Institute of Bankers Governors Day, he said the first leg of DGPP is to double gold holdings in the foreign exchange reserves within five years.

The Governor also spoke on the ‘Gold for Oil’ programme, saying it has also helped to reduce the demand for US dollars by the Bulk Oil Distribution Companies (BDCs) who would otherwise have sourced forex from the market for the importation of petroleum products.

He mentioned that a total of 14.23 tons, about $907 million of gold has so far been purchased for barter payments for importation of petroleum products.

The programme, he added, has also impacted the Central Bank’s cash flow, helped maintain stable ex-pump prices, fostered market confidence, and supported the local currency.

All these, he pointed out, have given some positive signals about a gradual turnaround in the economy of the direction of recent macroeconomic indicators.

“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.