The Bank of Ghana (BoG) is using gold as a strategic tool to rebuild foreign reserves, stabilise the cedi, and restore investor confidence after losing access to international capital markets during the country’s recent debt crisis.

Speaking at CNVERGE’25, hosted by the Ghana International Bank (GHIB), First Deputy Governor Dr. Zakari Mumuni said the central bank’s domestic gold strategy has become essential for hedging sovereign risk and shielding the economy from external shocks.

Ghana’s macroeconomic vulnerabilities deepened after the COVID-19 pandemic and the Russia–Ukraine war, triggering credit downgrades, closing access to global debt markets, and drying up a key source of foreign exchange. With investor confidence shaken, fiscal deficits widened and increased reliance on central bank financing added inflationary pressure.

“These events exposed structural weaknesses in our fiscal and debt frameworks,” Dr. Mumuni said, noting that the crisis prompted a complete rethink of the BoG’s reserve management approach.


At the centre of the response is the Domestic Gold Purchase Programme (DGPP), launched in June 2021 to double Ghana’s gold reserves within five years, starting from 8.74 tonnes. The initiative aims to diversify reserve assets, provide collateral for cheaper financing, and strengthen market confidence.

Historically, Ghana — Africa’s top gold producer in 2019 and the world’s seventh-largest — exported almost all of its output, relying instead on cocoa syndicated loans and Eurobonds for foreign exchange. By June 2025, the BoG had purchased 145.95 tonnes of gold under the DGPP, sold 86.77 tonnes for forex support, and raised physical holdings to 32.99 tonnes, which reached 34.4 tonnes in July.

A portion — 27.63 tonnes — was channelled into the Gold for Oil (G4O) initiative launched in 2022 to swap gold for petroleum products and curb fuel price-driven inflation. However, the BoG has since halted the G4O programme after incurring losses.

Dr. Mumuni said the gold-backed measures have helped stabilise the exchange rate, ease inflationary pressures, and contributed to Ghana’s June 2025 credit rating upgrade to B- with a stable outlook. The BoG has also introduced the Ghana Gold Coin — a high-purity investment product serving as a store of value, inflation hedge, and alternative asset class.


While noting opportunities for banks and traders in structured commodity products, gold-backed financing, and value addition in the supply chain, Dr. Mumuni cautioned that price volatility, market speculation, and environmental impacts remain key risks.

“The global economy has entered a new era where commodities are not just exported, but strategically leveraged to build resilience and drive inclusive growth. The Bank of Ghana is committed to this shift,” he said.

Gold prices have soared to historic highs over the past year, climbing from around US$2,100 per ounce in early 2024 to between US$3,500 and US$3,534 in recent months — a 39% year-on-year gain, among the steepest in modern history.

Analysts attribute the rally to geopolitical tensions, including U.S.–China trade frictions, new tariffs on Swiss-refined bullion, and ongoing conflicts in the Middle East. Strong institutional demand and central bank purchases — over 1,000 tonnes collectively for the second consecutive year — have reinforced gold’s role as a safe-haven asset.

Expectations of looser global monetary policy, driven by persistent inflation concerns, have also weakened the U.S. dollar and enhanced gold’s appeal.

Market watchers say the price trajectory reflects not only short-term risk aversion but a broader reassessment of gold’s strategic importance in global finance. Even so, the BoG is said to be proceeding cautiously to avoid overexposure amid an increasingly volatile geopolitical landscape.