BoG Eyes Gold Price Hedging to Shield Export Earnings as Reserves Hit $11bn

The Bank of Ghana (BoG) is exploring a price hedging programme for its gold exports to protect the country’s earnings from potential downturns in global gold prices.

Governor Dr. Johnson Asiama disclosed this strategic move at the Stanbic Bank/Graphic Business Breakfast Meeting held in Accra on June 15, 2025, emphasising that the initiative would cushion Ghana against external shocks.

“The time has come for not only the Bank of Ghana, but businesses should also explore hedging to minimise their shocks in these challenging times,” Dr. Asiama urged.

His remarks follow recent projections by global firms such as Barclays PLC, forecasting a possible decline in gold prices in the coming months.

BoG Reserves Rise to $11bn

Dr. Asiama also revealed that Ghana’s international reserves have reached $11 billion as of June, a notable buffer to support the cedi amid external vulnerabilities.

He stressed that hedging gold exports would “go a long way to deal with any potential shocks to the country’s export earnings,” adding that additional stabilisation measures are underway to strengthen the local currency.

Supporting the Cedi Through Local Investment

The Governor challenged exporters and businesses to reinvest their earnings domestically to reinforce cedi stability.

“The more value is kept within Ghana, the stronger the cedi becomes as well as the stability of the economy,” he said.

Dr. Asiama further encouraged the use of the Ghana cedi for all local transactions to strengthen its role as the primary medium of exchange.

“When you go to countries like South Africa, it’s purely their local currency. Let’s also try and do the same when it comes to the Ghana cedi,” he stated.

Commitment to Forex Stability

He reaffirmed the Central Bank’s commitment to forex stability, promising continued interventions to protect the economy.

“The cedi is the only legal tender in Ghana and lets make it work for all of us,” Dr. Asiama emphasised.

He concluded by calling for greater collaboration on market intelligence.

“I will encourage everyone to share market information with us and promise to work on it,” he assured.

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