(Ecofin Agency) - The Central Bank of Ghana has been buying gold to boost its foreign exchange reserves for several years. This initiative has significantly raised the country's gold holdings, making Ghana Africa's top gold producer. 

By the end of December 2024, the Bank of Ghana (BoG) reported that its gold reserves had grown to 30.5 tonnes, up from 19.5 tonnes the previous year. This increase was shared publicly on January 24, following the government's strategy to purchase gold from local miners.

Since 2023, mining companies must sell 20% of their gold output to the Central Bank in cedis, the local currency. In 2022, Mahamudu Bawumiathe, former Vice President of Ghana, explained that the government uses these gold bars for various state expenses, including fuel purchases. This approach has helped preserve foreign exchange reserves, which rose significantly last year.

According to the Bank of Ghana's Monetary Policy Committee, gross international reserves reached $8.98 billion at the end of 2024, enough to cover four months of imports. This is against $5.92 billion at the end of 2023, which covered only 2.7 months of imports. According to the Committee, the increase in gross international reserves was boosted by the good results of the national gold purchase program.

Ghana's strategy to buy gold for foreign exchange is not unique; other African nations like Tanzania and Nigeria are adopting similar measures. A report from the Official Forum of Monetary and Financial Institutions (OMFIF) revealed that central banks globally purchased over 1,000 tonnes of gold annually in 2022 and 2023.

According to recent estimates, global official gold stocks could reach 38,300 tonnes by 2026—a level not seen since 1965—mainly to diversify payment methods and reduce reliance on the dollar.

This article was initially published in French by Emiliano Tossou

Edited in English by Ola Schad Akinocho