Accra, July 20, 2026 — The Bank of Ghana has ceased its pre-financing arrangement for gold purchases by the Ghana Gold Board (GoldBod), effective July 1, 2026, marking a significant shift in domestic liquidity management.
Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, made the announcement during the opening remarks of the 131st Monetary Policy Committee (MPC) meeting on Monday.“With effect from 1 July 2026, the Bank ceased prefinancing the Ghana Gold Board’s gold purchases through its auction arrangements.
This represents an important change in the sources of domestic liquidity and will form part of our assessment this week,” Dr. Asiama stated.The MPC will evaluate the implications of this change on liquidity conditions, monetary policy transmission, inflation, credit growth, and exchange rate stability.
Background on the Arrangement
GoldBod, established in 2025 under the Ghana Gold Board Act (Act 1140), serves as the sole authority responsible for the purchase, assaying, export, and regulation of gold and other precious minerals in Ghana.
It primarily focuses on formalizing artisanal and small-scale mining (ASM) gold trade, reducing smuggling, and supporting the accumulation of gold reserves for the central bank.Prior to this change, the Bank of Ghana provided advance financing to GoldBod for gold purchases, particularly from ASM miners, under the Domestic Gold Purchase Programme (also referred to as Gold-for-Reserves). GoldBod initially operated in a transitional capacity as an agent of the BoG, handling procurement, assaying, and exports.
The previous arrangement had drawn scrutiny due to associated costs reflected on the Bank of Ghana’s balance sheet. GoldBod has maintained that it has delivered gold of equivalent value and recorded operational surpluses in its own accounts.Part of Broader Reforms.
The decision aligns with ongoing reforms in Ghana’s gold sector. GoldBod is transitioning toward full operational independence, moving beyond its initial role as an intermediary for the central bank.A major development in this direction is a landmark agreement reached with the Ghana Chamber of Mines. Effective July 1, 2026, GoldBod will purchase 30% of the gold output from large-scale mining companies.
Under the new terms, purchases will be made locally in Ghana cedis at the Bank of Ghana reference exchange rate, with a 0.55% discount, and in doré form to promote local refining capacity.GoldBod has already begun engaging commercial banks to secure sustainable and viable funding sources for its ASM gold purchases and foreign exchange generation activities.
Implications
The cessation of BoG pre-financing removes a key source of liquidity injection into the economy. Central bank officials view this as a positive step toward strengthening liquidity management and reducing quasi-fiscal pressures on the Bank of Ghana’s balance sheet.For GoldBod, the change requires greater reliance on government allocations, commercial financing, and its own operational revenues as it assumes fuller responsibility for gold trading activities.
The reforms are expected to enhance transparency, value addition, and retention of economic benefits from Ghana’s gold resources while supporting the central bank’s primary mandate of price and financial stability.The Monetary Policy Committee is expected to provide further guidance on the liquidity impact during its deliberations this week.
