Bank of Ghana Boosts Gold Reserves by 56% in Just One Year

The Bank of Ghana has increased its gold holdings from 19.5 tonnes in December 2023 to 30.5 tonnes in December 2024, representing a 56% rise within a year.

The central bank shared this data in a recent update, highlighting its continuous efforts to strengthen the country’s foreign reserves amid global economic uncertainties.

Gold reserves play a crucial role in a country’s financial security, serving as a hedge against currency depreciation and economic shocks. For Ghana, a country whose economy has faced pressure from inflation, currency fluctuations, and debt restructuring under an IMF-supported programme, the decision to accumulate more gold aligns with ongoing efforts to stabilize the financial system.

Ghana is Africa’s largest gold producer, yet its gold reserves have historically lagged behind its mining output. The Bank of Ghana introduced a Gold for Reserves Programme in 2021, allowing the central bank to buy gold from local producers to boost reserves. The initiative has gained momentum as part of broader economic reforms, including efforts to strengthen the cedi and reduce reliance on foreign currency reserves.

Compared to global standards, Ghana’s 30.5 tonnes of gold reserves remain modest. Data from the World Gold Council shows that the United States holds the world’s largest gold reserves at 8,133.5 tonnes, followed by Germany (3,355.1 tonnes), Italy (2,451.8 tonnes), and France (2,436.8 tonnes). In Africa, Algeria (174 tonnes) and South Africa (125 tonnes) hold the largest gold reserves, while Ghana is making steady progress in improving its position.

The increase in gold reserves comes at a time when Ghana is implementing policies to reduce its dependence on the US dollar for critical imports. The government‘s Gold for Oil Policy, which was introduced in 2022, has relied on the country’s gold resources to secure petroleum imports, easing pressure on forex reserves. By accumulating more gold, the Bank of Ghana could enhance its ability to support such initiatives while mitigating risks associated with global market volatility.

The 56% increase in just one year signals a more aggressive approach to reserve management, a move that could shape Ghana’s financial outlook in the coming years.

Last Updated on March 2, 2025 by samboad