The Bank of Ghana (BoG) has bought 65.4 tonnes of gold, valued at US$5.07 billion since inception of the domestic gold purchase programme a couple of years ago.
Since January, of this year alone, the bank, for instance, has bought 23 tonnes of gold valued at about US$1.8 billion.
The Governor of the BoG, Dr Ernest Addison, said at the opening of the Royal Gold Ghana Limited (RGGL) in Accra that the programme was a development, which, along with other donor disbursements, had put the bank in “a favourable position to support the country’s external payments obligations as and when they fall due”.
“Under the Domestic Gold Purchase Programme (DGPP), the Bank of Ghana has accumulated sizable foreign exchange buffers, for the most part, significantly exceeding expectations under the IMF programme,” he said.
According to him, the company “will no doubt provide impetus to BoG’s successful Domestic Gold Purchase Programme.”.
Gold is currently the leading export commodity with projected export earnings for 2024 estimated at close to US$10 billion.
Its value chain presents immense opportunities for job creation, increased foreign exchange earnings, and economic development. Even though Ghana has exported minerals, in particular Gold for over a century, its full potential on the local economy has yet to be fully realised.
The exportation of raw materials without value addition results in potential loss of revenue and jobs.
Dr Addison said the benefits of establishing a local gold refinery broadly aligned with BoG’s objective to build adequate foreign reserves to stabilise the economy during adverse domestic and external shocks and help achieve its core mandate of price stability, “and we are extremely pleased with the opening of the refinery”.
He said the opening of this gold refinery opened a new era to promote gold beneficiation and value addition, which would contribute to economic growth, poverty reduction, and ultimately, improvement in the livelihoods of Ghanaians.
“These are all based on the notion that value addition to Ghana’s gold resources holds the potential to increase foreign exchange earnings, improve the balance of payments position, and in turn, provide enough buffers against external vulnerabilities and shocks to the economy.
“This refinery will also play an important role in reducing gold smuggling, which has been a major challenge for the country over the years. By providing a ready market for artisanal and small-scale miners, the gold refinery can mitigate the incentive for smuggling and help promote transparency and accountability in gold trading,” the report by Daily Graphic on Tuesday quoted the governor of BoG as saying.