First Deputy Governor of the Bank of Ghana, Dr. Zakari Mumuni, says the Central Bank’s Gold Purchase Programme has played a key role in stabilising the cedi and easing inflation in recent months.

Speaking at the CNVERGE’25 Africa Premier Trade Banking Programme in London, Dr. Zakari revealed that the initiative has also improved Ghana’s credit rating, moving it from “restrictive default” to B- with a stable outlook in June 2025—an upgrade that has boosted investor confidence.

“These developments have contributed to a stable macroeconomic environment, which is of critical interest to your work,” he told participants.

Boosting Reserves, Reducing Dollar Reliance
The Gold Purchase Programme, launched in June 2021, was designed to build the Central Bank’s gold reserves and diversify its assets. Under the scheme, the Bank buys gold from local mining companies and pays them in Ghana cedis.

By increasing gold holdings—now at 34.40 tonnes as of July 2025—the programme reduces reliance on the US dollar, shielding Ghana’s reserves from global currency volatility. It also addresses long-standing concerns over the country’s historically low gold reserves.

Paving the Way for Gold for Oil
Dr. Zakari noted that the programme’s success laid the foundation for the Gold for Oil initiative, which uses foreign exchange and gold to facilitate government-to-government petroleum imports.

He credited the scheme with securing fuel at competitive prices, easing pressure on the forex market, and helping stabilise ex-pump petroleum prices.

“This has moderated volatile price pass-through effects on transport costs and, ultimately, on inflation,” he said.