Chamber of Mines gold sales boost reserves, drive cedi stability
By Praisebell Rosemond Larbi
Member companies of the Ghana Chamber of Mines sold a total of 358,218 ounces of gold to the Bank of Ghana (BoG) in 2024 under the Domestic Gold Purchase Program, in a move hailed as a significant contributor to Ghana’s foreign reserves and currency stability.
The disclosure was made by the Chief Executive Officer of the Chamber, Ing. Dr. Kenneth Ashigbey, during a press briefing in Accra.
He explained that the collaboration between the mining industry and the central bank was key to the relative strength of the Ghanaian cedi against the US dollar.
“The strength of the cedi today is predominantly based on gold. As an industry, we have an agreement through which, last year, we sold 358,218 ounces of gold to the Bank of Ghana under the Domestic Gold Purchase Program,” Dr. Ashigbey stated.
The Domestic Gold Purchase Program was introduced by the BoG in 2021 to bolster the country’s foreign reserves with locally sourced gold. The strategy seeks to diversify Ghana’s reserve portfolio beyond traditional currencies and reduce the central bank’s dependence on the US dollar for trade and reserves management.
Dr. Ashigbey added that the Chamber and its member companies are also actively supporting the central bank through the Voluntary Forex and Gold Purchase Initiative, an arrangement that allows the BoG to directly purchase foreign exchange and gold from large-scale miners, helping to reduce pressure on the interbank forex market.
“We also continue to support the Bank through the Voluntary Forex and Gold Purchase Initiative, which has boosted its reserve position and helped strengthen the cedi. It is important that we highlight these efforts and how they support both the national economy and our industry,” the CEO noted.
The Chamber emphasized that the partnership is mutually beneficial. While the BoG is able to shore up reserves and stabilize the cedi, mining companies benefit from a more stable macroeconomic environment, predictable exchange rates for operations, and a platform to demonstrate their broader contribution to national development.
Analysts have attributed part of the cedi’s improved performance to increased foreign exchange inflows from gold sales to the central bank. The BoG’s ability to build gold-backed reserves has also helped to inspire confidence in the local currency and mitigate speculative attacks.
In 2024, Ghana retained its position as Africa’s leading gold producer, surpassing South Africa, with total gold output exceeding 4 million ounces. Of this, the Chamber’s large-scale members accounted for the bulk of the production, underscoring the mining sector’s continued relevance to fiscal and external stability.
Dr. Ashigbey reaffirmed the Chamber’s readiness to deepen its cooperation with government institutions to ensure sustained macroeconomic resilience and long-term sectoral growth.
