Bank of Ghana Increases Gold Reserves: Governor Addison Discloses 7.70 Tonnes Added To Country's Reserves

• Bank of Ghana has announced that its gold reserves have increased by 7.70 tonnes by the end of June 2023
• This new revelation by the BoG means that Ghana's total gold reserves stand at 16.47 tonnes currently
• The 7.70 tonnes addition to the national gold reserves was obtained through the Domestic Gold Purchase Programme (DGPP)

Governor of the Bank of Ghana (BoG) Dr Ernest Addison has disclosed that some 7.7 tonnes of gold was added to the Bank's reserves in June 2023.

Because gold carries no credit risks, gold reserves are a source of trust in a country, and in all economic environments.

The more a country's gold reserves, the better its ability to withstand future economic shocks and hence fosters economic stability.

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The 7.70 tonnes addition to the national gold reserves was obtained through a special programme to increase Ghana's gold assets called the Domestic Gold Purchase Programme (DGPP).

The BoG made announced the increase in the national gold reserves when he spoke at the 2023 Gold Expo in Takoradi on Saturday, July 15, 2023.

He said the country is well within reach of achieving its objective of doubling its gold reserves within five years when the programme was launched in June 2021.

At the time the country's gold reserves stood at 8.77 tonnes. Ghana's total gold reserves, therefore, stand at 16.47 tonnes currently.

The 7.70 tonnes of gold is currently valued at more than $485 million.

Dr Addison said the country is on course to double its total gold reserves before the target year of 2027.

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"We are well ahead of the target initially set," Dr Addison was proud.

He noted further that the gold purchase programme has the potential of increasing Ghana’s foreign reserves through the refining of the purchased gold.

Ghana's gold production soars

Meanwhile, YEN.com.gh reported in a separate story that Ghana reclaimed the number spot in gold production in Africa after beating South Africa as gold production figures are released for 2022.

Per the latest figures, Ghana's gold production shot up impressively to 3.7 million ounces in 2022, compared to 2.8 million ounces in 2021.

Essentially, an increase in gold production by both large and small-scale miners in Ghana triggered an upsurge in production figures.

Governmemnt's gold-for-oil policy criticised

In March 2023, COPEC-GH's Duncan Amoah asked the government to roll back on its Gold-for-Oil policy because of the imminent threat it poses to the country's petroleum sector.

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He said at a forum held at the British High Commission in Accra on Tuesday, March 14, 2023, that the policy could also increase the pump price of fuel by more than 50%.

He explained that fuel goes through only three channels to get to the pump, however, under the Gold-for-Oil the channels are at least five, presenting an opportunity for players at each stage to add their profit margins to the final price.

Duncan also explained that the different channels that the new Gold-for-Oil policy creates are a major disruption to the globally accepted system, a situation that could discourage IOCs from bringing their cargo to Ghana.

Source: YEN.com.gh