Ghana plans to build foreign exchange reserves equivalent to 15 months of import cover by 2028 through an aggressive expansion of domestic gold purchases, according to a new report by the International Monetary Fund (IMF).
In its latest Selected Issues Paper, the IMF said the government intends to make domestic gold purchases the main instrument for reserve accumulation under the Ghana Accelerated National Reserve Accumulation Policy (GANRAP).
The Fund noted that the target is significantly higher than its own assessment of Ghana’s reserve needs.
“The plan calls for reserve coverage of 15 months of imports by 2028, significantly beyond Fund assessments of reserve adequacy requirements, which are estimated at about six months of imports,” the IMF said.
According to the report, the strategy envisages the Bank of Ghana purchasing a much larger share of gold output from large-scale miners and continuing substantial purchases from the artisanal and small-scale mining sector.
The IMF said the authorities intend to purchase up to 30 percent of large-scale mine output for reserve purposes, refine the gold domestically and hold it as part of the country’s international reserves.
The report said Ghana’s gross international reserves had already risen sharply to US$11.9 billion by end-2025, equivalent to roughly four months of imports, following the rapid expansion of gold-related operations.
While acknowledging the role of gold purchases in rebuilding reserves and supporting external stability, the IMF cautioned that a much larger reserve stock would come with significant costs.
The Fund estimated that the cost of sterilising the additional liquidity created by reserve accumulation could rise substantially, with open market operation costs potentially reaching about 3 percent of GDP, compared with roughly 1 percent of GDP in 2025.
The IMF also pointed to broader opportunity costs, noting that resources tied up in reserve accumulation could otherwise be available for domestic investment and development priorities.
The report added that the authorities have transferred responsibility for the Domestic Gold Purchase Programme to the Ghana Gold Board (GoldBod) from July 2026, with government now assuming the programme’s operational costs while the Bank of Ghana exits direct exposure to its quasi-fiscal losses.
The IMF said future gold sector policies should place strong emphasis on transparency, responsible sourcing and traceability to ensure that reserve accumulation does not come at the expense of environmental protection and financial accountability.
CREDIT: MAVIS FANTEVI