Bank of Ghana’s decision to enter domestic gold buying initiative a wise one – World Bank

•The Bank of Ghana has been lauded for entering into a domestic gold buying initiative

•The World Bank Country Director has since described the move as a wise one

•The central bank believes the initiative will help shore up its foreign reserves and ensure currency stability

The Country Director

Read full articlefor the World Bank in Ghana has lauded the Bank of Ghana for its move to enter into a domestic gold purchasing programme.

The programme which was recently announced by the central bank seeks to assist the country in shoring up its foreign reserves and ensuring currency stability.

Giving his thoughts on the development, Country Director for the Bretton Woods Institution, Pierre Laporte described the move by the central bank as a wise one.

“Gold is one of the safest means of saving, and it is not unusual for countries to have gold reserves as part of their reserves. So, I think it is a good initiative, and if you look at the evolution of prices of gold throughout the last 10 years, even from 2008 to now, I think it is a wise move,” Laporte is said to have been quoted by business24.com.gh

Meanwhile, the initiative by the Bank of Ghana will see it purchase gold from selected local mining firms and aggregators who will be paid in local currency at the prevailing market price.

Governor of the Bank of Ghana, Dr Ernest Addison earlier stated the bank is optimistic this novelty will double its gold holdings in the next five years from 8.7 tonnes to 17.4 tonnes and to boost its foreign exchange reserves.

The central bank also believes the gold purchasing programme will ensure currency stability and foster a rather attractive foreign direct investment regime.