The Bank of Ghana (BoG) has begun buying gold – one measure to boost the Bank’s reserves, which stand at almost US$11 billion.
The move follows the successful launch of the Bank’s domestic gold purchase programme at its headquarters in Accra.
Speaking at the launch, the Governor of the BoG, Ernest Addison, said the central bank hopes to double its gold holdings in the next five years with the programme.
“The programme we are launching today therefore sets the stage for Ghana to purchase gold as part of efforts to build its reserves.
xxxx
“This initial step will enable the Bank of Ghana (BoG) to buy domestically produced gold from selected gold aggregators and mining firms and pay in the local currency at the prevailing market price. Through this programme the BoG expects to double its gold holdings in the next five years,” he said.
The domestic gold purchase programme will pave the way for BoG, among other things, to grow its foreign exchange reserves to foster confidence, enhance currency stability, and create a more attractive environment for foreign direct investment and economic growth.
It will also enable the Bank to leverage its gold holdings to raise cheaper sources of financing to provide short-term foreign exchange liquidity.
Gold acquisition programme
Dore gold (unrefined gold) purchased from a gold aggregator will be assayed by the Precious Minerals Marketing Company (PMMC) – the national assayer. To assay is to simply test a metal to determine its ingredient and quality.
After going through a satisfactory assaying process, the PMMC will submit an assay report to BoG on the day of delivery. Using the agreed pricing sources for gold and the cedi/dollar exchange rate, the value of the gold supplied will be determined and paid to the aggregator within 48 hours.
At the next stage, BoG will aggregate the assayed dore gold purchases at its vaults and, from time to time, send the validated dore gold to an LBMA-certified refinery to be processed to the required international standard of good gold delivery (fineness of 99.99%).
Finally, the LBMA-certified gold will be stored at designated locations for BoG reserves.
Fred Dzakpata
Asaase Radio 99.5 – tune in or log on to broadcasts online
Follow us on Twitter: @asaaseradio995
#AsaaseRadio
#TheVoiceofOurLand
#WeLoveOurLand
