Ghana’s Central Bank Gold Strategy: Building a Fortress for the Cedi

Introduction:

The Bank of Ghana (BoG) has quietly executed one of Africa’s most ambitious reserve diversification strategies. Between May 2023 and October 2025, the central bank’s gold holdings surged from 8.78 tonnes to 38.04 tonnes, marking a 333% increase in just 29 months.

Bank of Ghana Gold Reserves

Background:

In response to global currency volatility and Ghana’s own foreign-exchange pressures, the BoG launched a gold purchase programme under the Domestic Gold Purchase Policy. The aim: to strengthen Ghana’s reserve position, support the cedi, and reduce reliance on imported U.S. dollars for critical imports like fuel.

Growth Trajectory:

• 2023: Gold reserves rose from 8.78 tonnes in May to 19.5 tonnes by December.

• 2024: Accumulation accelerated, surpassing 30 tonnes by year-end.

• 2025: The central bank crossed the 38-tonne mark by October.

  
  

This steady buildup demonstrates institutional commitment to long-term monetary stability.

Strategic Rationale:

Gold serves as a hedge against inflation and currency depreciation. For emerging markets like Ghana, it provides a tangible store of value when the cedi faces external pressures. The BoG’s policy aligns with a global trend many developing-country central banks have been increasing gold reserves to diversify away from the U.S. dollar.

Impact on the Cedi and Economy:

While gold alone cannot fully stabilize a currency, Ghana’s growing reserves enhance investor confidence and strengthen the country’s ability to manage short-term shocks. It also positions Ghana as one of Africa’s leading gold-holding central banks, following South Africa and Nigeria.

Outlook:

If current accumulation continues, Ghana’s gold reserves could exceed 40 tonnes by early 2026, reinforcing the BoG’s long-term vision of a diversified, resilient reserve portfolio.

Conclusion:

The Bank of Ghana’s gold strategy is more than a reserve policy. It’s a statement of financial sovereignty. By converting its natural resource wealth into monetary strength, Ghana is building a golden shield for its currency.