Ghana Central Bank to Start Buying Domestic Gold

SEATTLE (Scrap Monster): The Central Bank of the African nation of Ghana plans to jump into purchases of domestic gold, as part of efforts to strengthen its foreign reserves. The Bank of Ghana (BoG) will purchase domestic gold starting from the beginning of September this year.

Last week, the bank had announced that a domestic gold-buying program will be launched next month, with payments to be made in cedis. A roadmap for implementation of the gold purchase program was finalized during a recent meeting of the Economic Management Team, the Bank of Ghana, Ministry of Lands and Natural Resources, Minerals Commission and PMMC with the Ghana Chamber of Mines. As per the agreement, BoG will purchase a portion of the output of the gold mining companies on a continuous basis at prevailing market rates.

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Dr. Mahamudu Bawumia, Vice President, Ghana noted that the new program represents a significant and sustainable addition to Ghana's foreign exchange reserves and that it will strengthen the country's balance of payments. Alongside, it will also lend support to the mining industry in the country. It must be noted that the program has been in development for more than a year now.