The government has struck a deal with its large-scale mining companies to purchase 30% of their gold ​output beginning July 1, the government said on Thursday, ‌as it seeks to boost foreign currency reserves and develop local refining capacity.

• Central banks are increasingly stockpiling bullion as high prices bolster its ​appeal as a reserve asset.
• Ghana, Africa’s biggest gold producer, launched ​its purchase programme in 2022.
• It agreed with the miners, via the Ghana Chamber of Mines, that they would supply 20% of their annual output to the central bank.
• Holdings rose to 19.2 metric tons in February, according to Bank of Ghana data.
• The government revamped the programme in February, targeting up to 157 tons (15 months of import cover) by 2028, and launched negotiations with miners, including Newmont, Gold Fields,  ​and China's Zijin (601899.SS), to increase purchases.
• Under the agreement, large miners will sell ‌30% of their gold output to the state entity Gold Board, known as GoldBod, in dore form.
• Purchases will be discounted at 0.55% of the central bank's reference rate and settled in Ghanaian ​cedis.
• The arrangement is also designed to help Ghana secure London Bullion Market Association accreditation for at least one domestic refinery by 2030, the statement said.
• Gold from the scheme will ​be ⁠refined locally before being shipped to an LBMA refinery for melting and stamping before being added to central bank reserves.
• GoldBod already ⁠purchases the ​entire output of Ghana's artisanal gold ​miners.
• Increased gold reserves protect the country against external shocks and can be sold abroad ​to generate dollar income.