The Bank of Ghana has withdrawn its prefinancing support for the Ghana Gold Board’s domestic gold purchases, a move that could influence liquidity conditions and the direction of monetary policy.
The arrangement ended on July 1, 2026, at a time when private sector credit growth remains strong and inflation has begun to edge up from recent lows.
Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, announced the decision at the opening of the 131st Monetary Policy Committee meeting in Accra.
He said the Bank had stopped prefinancing GoldBod’s gold purchases through its auction arrangements as part of ongoing efforts to manage liquidity in the financial system.
The Governor said the cessation of the arrangement would remove one of the sources of liquidity injection into the economy, particularly at a time when credit to the private sector is expanding rapidly.
The development is expected to form part of the MPC’s assessment of current monetary conditions as it considers whether the existing policy stance remains appropriate.
According to Dr Asiama, the Committee will examine the implications of the decision for liquidity management and assess whether the balance between sterilisation measures and other structural interventions remains suitable.
The prefinancing arrangement was introduced under the Bank of Ghana’s Domestic Gold Purchase Programme, launched in 2021 to support the acquisition of locally produced gold and strengthen the country’s foreign exchange reserves.
Under the programme, the central bank provided financing to support GoldBod’s purchases of gold from licensed small-scale miners and aggregators.
The gold purchased was subsequently added to Ghana’s reserve assets, supporting efforts to diversify the country’s reserves and improve its resilience to external economic shocks.
The end of the prefinancing arrangement marks a shift in the way domestic gold purchases are financed and comes as the Bank of Ghana continues to monitor liquidity developments, credit expansion and inflationary pressures.
The MPC is expected to consider the full impact of the policy change as it determines the appropriate monetary policy direction.
