The Bank of Ghana (BoG) has ended its prefinancing arrangement for the Ghana Gold Board’s (GoldBod) domestic gold purchases, marking a significant shift in the central bank’s liquidity management strategy.
Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, announced the decision at the opening of the 131st Monetary Policy Committee (MPC) meeting in Accra, saying the new policy took effect on July 1, 2026.
According to him, the central bank will no longer provide advance financing for GoldBod’s gold purchases through its auction arrangements, a move expected to influence domestic liquidity conditions and feature prominently in the committee’s policy deliberations.
“With effect from July 1, 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 said.
He explained that the MPC will evaluate the implications of the policy shift for liquidity management, the effectiveness of monetary policy transmission and broader macroeconomic stability as it considers the appropriate policy stance.
The Governor noted that the decision comes amid a broader review of recent monetary policy measures, including the implementation of a uniform 20 percent Cash Reserve Ratio (CRR) for banks.
According to Dr. Asiama, changes in the composition of domestic liquidity have become increasingly important as credit conditions continue to improve.
He disclosed that real private sector credit growth has rebounded strongly to 34.1 percent, compared with a contraction of 4.5 percent during the same period last year, reflecting increased lending activity by banks.
“The Committee must assess what this implies for the calibration of the current stance, and whether the balance of sterilisation and structural measures remains appropriate,” he stated.
The Governor indicated that the central bank remains focused on strengthening its liquidity management framework while safeguarding macroeconomic stability amid external risks, including volatility in global commodity and oil markets.
The Monetary Policy Committee is expected to provide further guidance on how the Bank of Ghana intends to manage liquidity following the withdrawal of the GoldBod prefinancing arrangement and what the policy shift could mean for inflation, credit growth and exchange rate stability.
Source: businesspostonline
