BoG optimistic of assembly 540kg of gold goal by finish of 2021

The Financial institution of Ghana (BoG) has expressed optimism of assembly the goal of 540kg of gold by the tip of December this 12 months.

Thus far the BoG has bought 280KG ounce of gold in simply three months after the launch of the home gold buy programme.

Director of Monetary Market Division on the BoG, Steve Opata advised TV3’s Etornam Sey in interview on Monday September 27 after the Financial Coverage Committee press convention in Accra that, the technique is to double the amount in 5 years as a measure to spice up Ghana’s gold reserve.

“I’m pretty optimistic that we will meet our goal for this 12 months.

“The technique right here is to construct the gold reserve. We now have introduced that we’ll double our gold reserve within the 5 years and I imagine we’re on monitor to doing that.

“Subsequent 12 months, we’re even going to extend the amount to 2050KG. By way of how a lot it’ll add to our reserve this 12 months, we have now to take a look at the numbers.”

The Governor of the central financial institution Dr Ernest Addison launched the home gold buy programme on June 17 2021.

He acknowledged that the BoG’s international reserves had grown steadily over the past fifteen (15) years to present ranges of just about US$11.00 billion, however the portion of gold reserves has remained unchanged at 8.77 tonnes, with the typical worth of gold reserves held as a proportion of Gross Worldwide Reserves (GIR) at 6.14 p.c.

A cross nation comparability reveals that opposite to Ghana’s static gold holdings in its reserves, the USA and different industrialized international locations within the Eurozone have continued to carry massive gold reserves, put up the gold customary period.

In line with the Worldwide Financial Fund (IMF) and the World Gold Council, main industrialized international locations held the most important quantity of gold reserves as at April 2021, adopted by main rising markets with main growing international locations lagging behind the curve.

Globally, Central Banks demand for Gold, over the previous decade, ranks third behind Jewelry, Expertise and Funding sectors.

These developments are revealing as a result of Ghana has mined gold for over three centuries and for essentially the most half, the gold is exported. In 2019 as an example, Ghana was adjudged the most important producer of gold in Africa and the seventh largest on this planet. But, in that very same 12 months, different central banks acquired a file stage of 670 tonnes of gold to spice up their reserves in response to the World Gold Council.

The statistics present that the pandemic interval noticed a marginal decline in central banks’ gold demand however, the variety of central financial institution patrons outweighed the variety of sellers over the interval.

A lot of the patrons have been from rising market international locations which had decrease ratios of goldto-total reserves. For example, Turkey was the most important annual gold web purchaser, including 134.5 tonnes to its official gold reserves in 2020 alone.

Different massive web purchasers of gold in the course of the pandemic yearwere, India, Russia, United Arab Emirate, Qatar, Colombia and Cambodia, amongst others. Ghana added nothing to its gold reserves over the interval.

The programme we’re launching at this time due to this fact units the stage for Ghana to buy gold as a part of efforts to construct its reserves. This preliminary step will allow the Financial institution of Ghana (BoG) purchase domestically produced gold from chosen gold aggregators and mining corporations and pay within the native forex on the prevailing market worth. By way of this programme the BoG expects to double its gold holdings within the subsequent 5 years.

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By Laud Nartey|3news.com|Ghana