BoG purchases 600kg of dore gold to enhance gross reserves - Dr. Ernest Addison

BoG launches Domestic Gold Purchase initiative in June 2021

Central Bank aiming to improve gold holdings, Governor

BoG to export dore gold in the next months – Dr Ernest Addison

Governor of the Bank of Ghana, Dr Ernest Addison, has disclosed the bank has purchased some 600 kilogrammes of dore gold yet to be refined under its Domestic Gold Purchase (DGP) programme.

The move, according to the governor forms part of efforts to shore up the country’s gross reserves.

Speaking at the 105th press conference of the Monetary Policy Committee, Dr Addison said the bank is keen on ensuring the dore gold is well refined into high standards before it qualifies as a reserve asset.

“The Domestic Gold Purchase programme forms part of measures that will impact the level of gross reserves in the medium term and we’ve made quite some progress…I think we’ve bought about 600 kilogrammes of dore gold but this gold has be refined into high standards before the gold can qualify as a reserve asset.”

“…And we’re in the process of fulfilling all due diligence and requirements especially with LBMA which certified refineries in the world look out for and we’re hoping that in the next month or two, we would be able to export the dore gold that we have and once the gold is refined it becomes part of our gross reserve,” Dr Ernest Addison added.

Although Ghana is yet to receive its LMBA certification, the BoG Governor said the government is working to ensure the country gets the certification to refine gold domestically.

The LBMA is an independent precious metal authority that advances standards for the common good of the global sector.

Meanwhile, in June 2021, the central bank launched the DGP programme aimed at boosting the country’s foreign reserves and improving gold holdings.

The programme is expected to also diversify the central bank's revenue base through leveraging its gold holdings.

The Bank of Ghana, through the DGP programme is seeking to grow its current gold holdings to 8.7 tonnes by 2026 in order to boost its total gold reserves to 17.4 tonnes.