Ghana Raises Gold Purchase Quota to 30% for Large Mines From June
0h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
goldghana-central-bank
Fazen Markets Editorial Desk
Collective editorial team · methodology
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The Bank of Ghana announced on June 1, 2026, that it will increase its mandatory gold purchase quota from large-scale domestic producers to 30% of their refined output, a significant rise from the previous 20% requirement. This policy shift is a core component of the central bank's Domestic Gold Purchase Programme, designed to strengthen its foreign exchange reserves. The move directly targets enhancing the country's economic stability by increasing the proportion of physical gold held in its reserves.
Ghana initiated its formal Domestic Gold Purchase Programme in 2021 to actively bolster its international reserves with a non-dollar asset. The programme began with a more modest purchase target before being raised to 20% of mine output in late 2023. This latest increase to 30% reflects ongoing pressures on the Ghanaian cedi, which has faced depreciation against the US dollar due to high public debt and elevated import costs. The central bank's strategy aims to diversify reserve assets away from traditional currencies and use the country's natural resource wealth to build a more resilient balance sheet. The timing coincides with global central banks, particularly those in emerging markets, continuing to be net buyers of gold as a hedge against geopolitical and currency risks.
The current macroeconomic backdrop for Ghana includes an ongoing debt restructuring program and inflation rates that, while having cooled from peaks, remain a primary concern for policymakers. By acquiring more domestic gold, the Bank of Ghana seeks to reduce its reliance on volatile capital flows for reserve accumulation. The catalyst for the quota increase is the sustained need to shore up investor confidence and provide a stable foundation for the cedi ahead of anticipated debt service payments. This policy is viewed as a direct intervention to manage external sector vulnerabilities.
The increase from 20% to 30% represents a 50% rise in the central bank's claim on formal sector gold production. Ghana's large-scale mines produced approximately 3.1 million ounces of gold in 2025. At a prevailing gold price of $2,350 per ounce, the total value of annual large-scale production is roughly $7.3 billion. The previous 20% quota gave the Bank of Ghana access to about $1.46 billion worth of gold annually. The new 30% quota increases this potential annual acquisition to nearly $2.2 billion, a direct addition of over $700 million in gold assets to the reserve portfolio.
| Metric | Before (20% Quota) | After (30% Quota) | Change |
|---|---|---|---|
| Annual Ounces Acquired | ~620,000 oz | ~930,000 oz | +310,000 oz |
| Approx. Annual Value | ~$1.46bn | ~$2.2bn | +$740m |
This domestic purchasing activity supplements the central bank's international acquisitions. Ghana's gross international reserves stood at approximately $6.2 billion as of April 2026, equivalent to roughly 2.9 months of import cover. The gold price itself is up 8% year-to-date, outperforming the Bloomberg Commodity Index's 3% gain over the same period.
The immediate second-order effect is a reduction in the volume of gold available for export by mining companies, potentially tightening global supply from a major producer. This is a net positive for global gold prices, all else being equal, as it subtracts a consistent volume from the market. Listed gold producers with significant Ghanaian operations, such as Newmont Corporation (NEM) and Gold Fields Ltd (GFI), will see a larger portion of their revenue channeled through the central bank, likely at a small discount to the world price. While this could slightly compress gross margins, it provides a guaranteed offtake agreement for nearly a third of their output.
A key risk is the potential for the policy to discourage future investment in the Ghanaian mining sector if companies perceive increasing government appropriation of their production. The counter-argument is that the policy supports macroeconomic stability, which benefits all businesses operating in the country. Positioning data suggests institutional investors are already increasing exposure to gold miners with diversified global portfolios outside of West Africa to mitigate concentration risk. Flow has been positive for ETFs like the VanEck Gold Miners ETF (GDX) as investors anticipate firmer gold prices.
The next key indicator will be Ghana's gross international reserves data for June and July 2026, which will show the initial impact of the increased gold acquisitions. Market participants should monitor the USD/GHS currency pair for any sustained strengthening of the cedi as a result of the bolstered reserves. The Bank of Ghana's next monetary policy committee meeting, scheduled for July 27, 2026, will be scrutinized for commentary on the programme's effectiveness.
The gold price level of $2,400 per ounce is a critical resistance point to watch; a sustained break above could be accelerated by continued aggressive buying from central banks. The International Monetary Fund's next review of Ghana's $3 billion loan program, expected in Q3 2026, will assess the country's progress on fiscal consolidation and external sector reforms, with the gold purchase programme being a likely topic. The performance of junior mining explorers in Ghana, such as those on the ASX and TSX-V, will signal market sentiment on the country's investment attractiveness post-policy change.
The Bank of Ghana purchases gold directly from large-scale mining companies operating within the country through a pre-agreed offtake arrangement. The gold is bought at a price referenced to the international spot price, often with a small deduction for refining and transaction costs. The acquired gold is then transported to the central bank's vaults and added to its official reserve assets. This process is part of a formal strategy to reduce reliance on foreign currency borrowing for reserve accumulation.
The increased 30% quota applies specifically to large-scale, formally registered mining companies. Ghana's small-scale mining sector, which is a significant source of production and employment, operates under a different regulatory framework. Small-scale miners are required to sell their gold to the government-owned Precious Minerals Marketing Company (PMMC). The central bank's programme does not directly alter this dynamic, though it may increase overall government focus on domestic gold acquisition.
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