The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has announced that the Central Bank is actively considering the implementation of a gold price hedging programme to safeguard Ghana’s export revenues against potential shocks in the international commodities market.

Addressing participants at the Stanbic Bank/Graphic Business Breakfast Meeting held in Accra on June 15, 2025, Dr. Asiama noted that the move is part of broader efforts to mitigate risks associated with a possible decline in global gold prices.

“The time has come for not only the Bank of Ghana but also local businesses to seriously explore hedging strategies to cushion themselves in these uncertain times,” he said.

His comments follow forecasts from global institutions such as Barclays PLC, which predict a potential drop in gold prices in the months ahead.

Reserves Boost and Currency Stability

Dr. Asiama further revealed that Ghana’s international reserves stood at $11 billion as of June 2025 — a substantial buffer that reinforces the country's external sector and provides support for the stability of the Ghana cedi.

He emphasized that the proposed gold hedging plan would help the BoG absorb external shocks, preserve export earnings, and strengthen long-term macroeconomic resilience.

“The cedi is the only legal tender in Ghana, and it is imperative that we all play our part in maintaining its strength,” he stated.

He called on businesses to conduct all domestic transactions in cedis, citing countries like South Africa where the local currency is exclusively used for internal trade.

Call for Reinvestment and Market Cooperation

In a bid to bolster the local currency, Dr. Asiama urged Ghanaian exporters and entrepreneurs to reinvest their foreign exchange earnings back into the economy.

“The more value that is retained within Ghana, the stronger the cedi becomes, which in turn enhances the overall stability of the economy,” he explained.

The BoG Governor also highlighted the need for greater collaboration between the Central Bank and market players to sustain foreign exchange stability. He encouraged stakeholders to share market insights with the Bank, assuring them that such information would be acted upon in the interest of national economic stability.

Dr. Asiama concluded by reaffirming the BoG’s commitment to introducing policies that promote a resilient and stable currency environment.