BoG credits domestic gold purchase program for cedi stability, inflation drop
By Praisebell Rosemond Larbi
The Bank of Ghana (BoG) has attributed the stability of the cedi and the recent easing of inflationary pressures to the success of its Domestic Gold Purchase Program (DGPP).
Introduced in 2021, the initiative has significantly bolstered Ghana’s foreign reserves and underpinned the local currency, helping to restore investor confidence.
The program’s impact has also been reflected in the country’s credit rating upgrade in June 2025, when ratings agency Fitch moved Ghana from “restrictive default” to “B-” with a stable outlook.
First Deputy Governor of the Bank of Ghana, Dr. Zakari Mumuni, made the remarks while speaking on the topic ‘Leveraging Commodities: The Central Bank’s View’ at CNVERGE ’25, Africa’s premier trade banking thought leadership event.
He explained that the DGPP is not merely a reserve accumulation strategy but part of a broader vision to harness the country’s rich commodity base for economic resilience and stability.
Providing an update on the program’s performance as of the end of June 2025, Dr. Mumuni revealed that the central bank had purchased a total of 145.95 tonnes of gold since its inception.
Of this volume, 86.77 tonnes were sold for foreign exchange to reinforce reserves, while the Bank’s physical gold holdings increased to 32.99 tonnes, up from just 8.74 tonnes when the program commenced.
According to Dr. Mumuni, the benefits have been clear.
“On all counts, the Domestic Gold Purchase Program has impacted positively, with strong reserve accumulation, stability in the exchange rate, and easing inflation. These have helped to improve the country’s credit profile from restrictive default to B- with a stable outlook in June 2025, boosting investor confidence,” he said.
The DGPP’s design allows the central bank to source gold directly from domestic producers, reducing reliance on foreign currency to purchase the precious metal from international markets.
This, in turn, has lowered the pressure on the cedi, helped contain imported inflation, and strengthened Ghana’s macroeconomic fundamentals.
