The Bank of Ghana (BoG) and the Ghana Gold Board (GoldBod) are finalising a new financing arrangement designed to support the country's gold purchasing programme while alleviating pressure on the central bank's balance sheet.
The development signals a structural shift in how the West African nation manages its gold reserves, moving away from direct central bank funding toward a more sustainable model.
According to MyJoyOnline, the new framework is intended to reduce the strain on the BoG's balance sheet, which has faced significant pressure in recent years due to the costs associated with maintaining gold reserves.
The arrangement is expected to provide a more stable funding source for the gold purchasing programme, which is a critical component of Ghana's monetary policy and foreign exchange management strategy.
Ghana is one of Africa's largest gold producers, and the metal plays a pivotal role in the country's economy.
The gold purchasing programme has been used to bolster foreign exchange reserves and support the cedi, but the direct funding from the central bank has raised concerns about balance sheet sustainability.