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The Bank of Ghana has added over 7.70 tonnes of monetary gold to the existing 8.7 tonnes of gold reserves as of June 30, this is according to the Governor of the Bank of Ghana Dr. Ernest Addison
He said this has been made possible through the domestic gold purchase program.
According to him, mining firms accounted for about 80% and the remaining 20% from the artisanal small-scale mining sector through an approved aggregator.
Speaking at the 4th edition of the just-ended Ghana Mining Expo Dr. Addison said the bank is poised to double its reserves by the end of this year.
The BoG Governor noted that before the introduction of the Programme in June 2021, Ghana’s gold holdings had remained at 8.77 tonnes over the years.
Dr. Addison indicated that the key objective of the program was to leverage gold holdings to raise cheaper sources of financing to provide short-term foreign exchange liquidity.
Dr. Ernest Addison disclosed that the bank’s aim of doubling its gold reserves from 8.77 tonnes to 17. 4 tonnes in five years through the DGPP was yielding positive results saying, “Indeed, we are on course to more than double the level of the central bank’s gold reserves by the end of this year, well ahead of the target initially set”.
The increase in the gold reserves of the Bank, he explained, provided additional buffers which would help the economy to withstand future global economic shocks, build resilience and manage the impact of macroeconomic imbalances better.
Dr Addison indicated that:
“The Bank will gradually expand the suppliers in the ASM sector under the Responsible Sourcing Framework while working closely with the Precious Minerals Marketing Company in adopting and integrating our Responsible Sourcing & Due Diligence Framework in their operations geared towards the formalization drive. We will also work with the key stakeholders and the mining regulator to improve upon standards of the community Mines to be an important gold supplier”.
He also noted that effective mechanisms were being put in place to address the menace associated with unlicensed miners who violated sustainable mining practices.
He concluded that:
“It is our expectation that as the benefits of the DGP programme become tangible to all the players in the value chain, activities of these illegal operators will be reduced or made to align with responsible mining practices as the economic and legal costs of operating outside the Law will be prohibitively expensive”
